Insider Unloading: William E. Waltz, Jr. Sells $6.91M Worth Of Atkore Shares

It was reported on February 26, that William E. Waltz, Jr., President and CEO at Atkore ATKR executed a significant insider sell, according to an SEC filing.

What Happened: Jr.'s recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 43,072 shares of Atkore. The total transaction value is $6,912,048.

As of Tuesday morning, Atkore shares are down by 0.0%, currently priced at $161.03.

Unveiling the Story Behind Atkore

Atkore Inc is a diversified industrials company and a manufacturer of electrical, mechanical, and safety infrastructure solutions. Atkore has two business segments: electrical and safety and infrastructure. Net sales are highest in the electrical business line as well as in the United States. The key product categories in the electrical segment are PVC conduit, steel conduit, and PVC-coated conduit, which are staples for electrical distributors. The key product categories in the safety and infrastructure segment include in-line galvanized mechanical tube, metal framing and related fittings, and security bollards. Also, the company provides ancillary services to customers in the form of slitting and cutting structural steel sheets.

Financial Milestones: Atkore's Journey

Revenue Growth: Atkore's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -15.46%. This indicates a decrease 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.

Evaluating Earnings Performance:

• Gross Margin: With a low gross margin of 34.66%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Atkore's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.7.

Debt Management: Atkore's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.6.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 9.65 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.78, 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): The company's EV/EBITDA ratio 6.64 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Delving Into the Significance of Insider Transactions

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

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.

Unlocking the Meaning of 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 Atkore's Insider Trades.

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