Applied Industrial Techs Insider Trades Send A Signal

Revealing a significant insider sell on December 2, Warren E. Hoffner III, VP at Applied Industrial Techs AIT, as per the latest SEC filing.

What Happened: III's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 4,000 shares of Applied Industrial Techs. The total transaction value is $1,126,560.

The latest update on Tuesday morning shows Applied Industrial Techs shares up by 1.09%, trading at $275.88.

About Applied Industrial Techs

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.

Financial Milestones: Applied Industrial Techs's Journey

Revenue Growth: Applied Industrial Techs's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 0.34%. This signifies a substantial increase 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.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 29.58%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Applied Industrial Techs's EPS is below the industry average. The company faced challenges with a current EPS of 2.4. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.34.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 27.85, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.38, Applied Industrial Techs's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 18.71, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

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.

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.

Essential Transaction Codes Unveiled

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.

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