Noteworthy Insider Activity: James A Michaud Invests $173K In Allient Stock

A notable insider purchase on March 7, was reported by James A Michaud, Chief Financial Officer at Allient ALNT, based on the most recent SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Michaud increased their investment in Allient by purchasing 7,298 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $173,254.

Monitoring the market, Allient's shares down by 2.29% at $24.73 during Friday's morning.

Unveiling the Story Behind Allient

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.

A Deep Dive into Allient's Financials

Negative Revenue Trend: Examining Allient's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -13.47% in revenue growth, reflecting a decrease 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.

Holistic Profitability Examination:

• Gross Margin: The company excels with a remarkable gross margin of 31.45%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Allient's EPS reflects a decline, falling below the industry average with a current EPS of 0.19.

Debt Management: Allient's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.94, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation Breakdown:

• 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: With a P/S ratio of 0.79 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing 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 Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.