Orion Insider Trades SendAa Signal

On August 9, Corning F Painter, Chief Executive Officer at Orion OEC executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Painter increased their investment in Orion by purchasing 20,000 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $349,670.

The latest update on Friday morning shows Orion shares up by 1.1%, trading at $18.41.

All You Need to Know About Orion

Orion SA is a manufacturer of carbon black products. Carbon black is a powdered form of carbon used to create the desired physical, electrical and optical qualities of various materials. The company's operating segments are Specialty Carbon Black and Rubber Carbon Black. It generates maximum revenue from the Rubber Carbon Black segment. Rubber Carbon Black segment is used in the reinforcement of rubber in tires and mechanical rubber goods. The Specialty Carbon Black segment is used as pigments and performance additives in coatings, polymers, printing, and special applications. Geographically, it derives a majority of its revenue from Germany.

Understanding the Numbers: Orion's Finances

Revenue Growth: Orion displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 3.97%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 23.02%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Orion exhibits below-average bottom-line performance with a current EPS of 0.35.

Debt Management: Orion's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.66, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Orion's P/E ratio of 13.69 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.57 is lower than the industry average, implying a discounted valuation for Orion's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 6.4 is below the industry average, indicating that it may be relatively undervalued compared to peers.

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

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Exploring Key Transaction Codes

When analyzing 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 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 Orion's Insider Trades.

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