Major Exercise Alert: John W Pregenzer Exercises Options Worth $492K At Atkore

In a new SEC filing on November 27, it was revealed that Pregenzer, President at Atkore ATKR, executed a significant exercise of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Pregenzer, President at Atkore, a company in the Industrials sector, just exercised stock options worth 6,548 shares of ATKR stock with an exercise price of $17.9.

Atkore shares are trading down 1.87% at $93.17 at the time of this writing on Thursday morning. Since the current price is $93.17, this makes Pregenzer's 6,548 shares worth $492,867.

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. 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 tubes, 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. Geographically, the company derives its key revenue from the United States.

Financial Insights: Atkore

Revenue Growth: Atkore's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -9.38%. This indicates a decrease 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.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 27.41%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.04, Atkore showcases strong earnings per share.

Debt Management: Atkore's debt-to-equity ratio stands notably higher than the industry average, reaching 0.62. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Atkore's P/E ratio of 7.48 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.09 is lower than the industry average, implying a discounted valuation for Atkore'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 5.06 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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The Impact of Insider Transactions on Investments

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 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.

A Deep Dive into Insider 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.

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