Insider Decision: Patrick W Fogarty Offloads $60K Worth Of Park-Ohio Hldgs Stock

Patrick W Fogarty, VP & CFO at Park-Ohio Hldgs PKOH, reported an insider sell on December 14, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Fogarty sold 2,500 shares of Park-Ohio Hldgs. The total transaction amounted to $60,132.

The latest update on Friday morning shows Park-Ohio Hldgs shares down by 0.0%, trading at $24.52.

Unveiling the Story Behind Park-Ohio Hldgs

Park-Ohio Holdings Corp is a company, engaged in industrial supply chain logistics and diversified manufacturing business. It operates in three business segments namely Supply Technologies, Assembly Components and Engineered Products. Geographically, the business of the group is amplifying across the region of the United States, Asia, Europe, Canada, Mexico and others. The company derives most of the revenue from the Supply Technologies segment which provides the customer with total supply management services such as engineering and design support, supplier selection, quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery and electronic billing services for a range of production components.

Financial Milestones: Park-Ohio Hldgs's Journey

Revenue Growth: Over the 3 months period, Park-Ohio Hldgs showcased positive performance, achieving a revenue growth rate of 9.12% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 16.71%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Park-Ohio Hldgs's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.9.

Debt Management: Park-Ohio Hldgs's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.6, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 15.23 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.18, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 9.45, Park-Ohio Hldgs could be considered undervalued.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Transaction Codes Worth Your Attention

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Park-Ohio Hldgs's Insider Trades.

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