DAVID ZAPICO Takes Money Off The Table, Sells $3.03M In AMETEK Stock

DAVID ZAPICO, Chief Executive Officer at AMETEK AME, disclosed an insider sell on February 21, according to a recent SEC filing.

What Happened: ZAPICO opted to sell 16,047 shares of AMETEK, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $3,029,352.

The latest update on Friday morning shows AMETEK shares down by 0.0%, trading at $188.78.

Unveiling the Story Behind AMETEK

Founded in 1930 and transformed over the decades through the acquisition of dozens of esteemed brands, Ametek owns a collection of over 40 autonomous industrial businesses operating within the research, aerospace, energy, medical, and manufacturing industries. Ametek segments its business into two operating groups: the electronic instruments group and the electromechanical group. The EIG sells a broad portfolio of analytical, test, and measurement instruments, while the EMG sells highly engineered components, interconnects, and specialty metals. The company emphasizes product differentiation and market leadership in the niche markets where it operates.

Financial Milestones: AMETEK's Journey

Revenue Growth: AMETEK's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 5.28%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Evaluating Earnings Performance:

• Gross Margin: With a low gross margin of 36.04%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): AMETEK's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.47.

Debt Management: AMETEK's debt-to-equity ratio is below the industry average at 0.24, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 31.83 is lower than the industry average, implying a discounted valuation for AMETEK's stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.31 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): AMETEK's EV/EBITDA ratio, lower than industry averages at 21.0, indicates attractively priced shares.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Uncovering the Importance of Insider Activity

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of AMETEK's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.