Major Purchase Alert: Kenneth A. May Invests $87K In Allient Stock

A new SEC filing reveals that Kenneth A. May, Chief Technology Officer at Allient ALNT, made a notable insider purchase on March 7,.

What Happened: In a Form 4 filing on Friday with the U.S. Securities and Exchange Commission, it was disclosed that May bought 3,686 shares of Allient, amounting to a total of $87,505.

As of Friday morning, Allient shares are down by 0.71%, currently priced at $25.13.

Discovering Allient: A Closer Look

Allient Inc, formerly Allied Motion Technologies Inc designs, manufactures, and sells precision and specialty motion control components and systems. The firm primarily caters to the vehicle, medical, aerospace and defense, and electronics and industrial, pumps, and robotics sectors. It mainly operates and sells across the United States, Canada, South America, Europe, and Asia. Its products and solutions include nano precision positioning systems, servo control systems, motion controllers, digital servo amplifiers and drives, brushless servo, torque, and coreless motors, brush motors, integrated motor drives, gear motors, gearing, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power quality and harmonic issues.

Unraveling the Financial Story of Allient

Decline in Revenue: Over the 3 months period, Allient faced challenges, resulting in a decline of approximately -13.47% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 31.45%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Allient exhibits below-average bottom-line performance with a current EPS of 0.19.

Debt Management: Allient's debt-to-equity ratio surpasses industry norms, standing at 0.94. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 32.0 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.79, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 11.4, Allient presents an attractive value opportunity.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Delving Into the Significance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Allient's Insider Trades.

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