Noteworthy Insider Activity: Gary Hendrickson Invests $149K In Polaris Stock

Gary Hendrickson, Board Member at Polaris PII, disclosed an insider purchase on April 29, based on a new SEC filing.

What Happened: Hendrickson made a significant move by purchasing 1,801 shares of Polaris as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $149,987.

Monitoring the market, Polaris's shares down by 0.0% at $86.8 during Tuesday's morning.

Get to Know Polaris Better

Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to new segments of the outdoor lifestyle market. Polaris products retailed through more than 2,500 dealers in North America and through 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.

A Deep Dive into Polaris's Financials

Revenue Challenges: Polaris's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -20.34%. This indicates a decrease in 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 Consumer Discretionary sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company faces challenges with a low gross margin of 19.02%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Polaris exhibits below-average bottom-line performance with a current EPS of 0.07.

Debt Management: Polaris's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.61, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 12.71 is lower than the industry average, implying a discounted valuation for Polaris's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.59, 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 7.8, Polaris presents an attractive value opportunity.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Deciphering Transaction Codes in Insider Filings

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 Polaris's Insider Trades.

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