Patrick Industries Board Member Sold $169K In Company Stock

Revealing a significant insider sell on February 12, Derrick B Mayes, Board Member at Patrick Industries PATK, as per the latest SEC filing.

What Happened: Mayes's decision to sell 1,820 shares of Patrick Industries was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $169,750.

At Wednesday morning, Patrick Industries shares are down by 0.0%, trading at $93.64.

Get to Know Patrick Industries Better

Patrick Industries Inc makes and sells building products and materials for recreational vehicles and manufactured housing. The company is organized into two segments based on product type: manufacturing and distribution. The manufacturing segment, which generates the majority of revenue, sells laminated and vinyl products that include furniture, shelving, cabinets, bath fixtures, and countertops. The distribution segment sells prefinished wall and ceiling panels, as well as electrical and plumbing products for the RV and manufactured housing industries. One of the firm's RV customers makes up a portion of revenue.

Patrick Industries: Delving into Financials

Revenue Growth: Patrick Industries displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 6.16%. 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 Consumer Discretionary sector.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 23.11%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Patrick Industries's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.253333.

Debt Management: Patrick Industries's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.42, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The P/E ratio of 22.78 is lower than the industry average, implying a discounted valuation for Patrick Industries's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.85, 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): Patrick Industries's EV/EBITDA ratio, surpassing industry averages at 10.92, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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The Importance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Patrick Industries's Insider Trades.

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