Applied Industrial Techs President and CEO Sold $748K In Company Stock

Revealing a significant insider sell on August 21, Neil A Schrimsher, President and CEO at Applied Industrial Techs AIT, as per the latest SEC filing.

What Happened: After conducting a thorough analysis, Schrimsher sold 3,703 shares of Applied Industrial Techs. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $748,894.

Tracking the Thursday's morning session, Applied Industrial Techs shares are trading at $204.51, showing a down of 0.0%.

Discovering Applied Industrial Techs: A Closer Look

Applied Industrial Technologies Inc is a distributor of industrial products to the maintenance, repair, and operations market and the original equipment manufacturing industry. Further, the company provides engineering and design services for industrial and fluid power applications. The products include bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, safety products, oilfield supplies, and other industrial and maintenance supplies. The company's reportable segments are; Service Center Based Distribution which derives key revenue, and Engineered Solutions. Geographically, the company derives its key revenue from the United States and the rest from Canada and other countries.

Key Indicators: Applied Industrial Techs's Financial Health

Revenue Growth: Over the 3 months period, Applied Industrial Techs showcased positive performance, achieving a revenue growth rate of 0.22% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 30.69%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Applied Industrial Techs's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.68.

Debt Management: Applied Industrial Techs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.35.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 20.8 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.79, 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): The company's EV/EBITDA ratio 13.98 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as 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.

A Deep Dive into Insider Transaction Codes

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 Applied Industrial Techs's Insider Trades.

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