John W Pregenzer At Atkore Capitalizes: Options Exercised, Resulting In $274K

A substantial insider activity was disclosed on March 4, as Pregenzer, President at Atkore ATKR, reported the exercise of a large sell of company stock options.

What Happened: A notable Form 4 filing on Monday with the U.S. Securities and Exchange Commission revealed that Pregenzer, President at Atkore, exercised stock options for 4,044 shares of ATKR, resulting in a transaction value of $274,550.

The Tuesday morning market activity shows Atkore shares down by 0.0%, trading at $172.2. This implies a total value of $274,550 for Pregenzer's 4,044 shares.

About 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.

Key Indicators: Atkore's Financial Health

Decline in Revenue: Over the 3 months period, Atkore faced challenges, resulting in a decline of approximately -4.24% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 36.39%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Atkore's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.66.

Debt Management: Atkore's debt-to-equity ratio is below the industry average. With a ratio of 0.61, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 10.32 is lower than the industry average, implying a discounted valuation for Atkore's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.91, 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 a lower-than-industry-average EV/EBITDA ratio of 7.07, Atkore presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.