Steven Kohlhagen Takes Money Off The Table, Sells $250K In AMETEK Stock

Revealing a significant insider sell on March 4, Steven Kohlhagen, Director at AMETEK AME, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Kohlhagen sold 1,320 shares of AMETEK. The total transaction value is $250,027.

In the Tuesday's morning session, AMETEK's shares are currently trading at $184.24, experiencing a down of 1.24%.

All You Need to Know About 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.

Understanding the Numbers: AMETEK's Finances

Positive Revenue Trend: Examining AMETEK's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.77% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 36.6%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): AMETEK's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.68.

Debt Management: AMETEK's debt-to-equity ratio is below the industry average at 0.22, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The P/E ratio of 31.46 is lower than the industry average, implying a discounted valuation for AMETEK's stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 6.24, AMETEK's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 20.76, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Delving Into the Significance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.