Options Exercise Update At Helios Technologies: Matteo Arduini Engages, Resulting In $0

In a new SEC filing on March 3, it was revealed that Arduini, President Hydraulics at Helios Technologies HLIO, executed a significant exercise of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Arduini, President Hydraulics at Helios Technologies, a company in the Industrials sector, just exercised stock options worth 0 shares of HLIO stock with an exercise price of $0.0.

Currently, Helios Technologies shares are trading down 1.99%, priced at $36.79 during Tuesday's morning. This values Arduini's 0 shares at $0.

Get to Know Helios Technologies Better

Helios Technologies Inc is a industrial technology company that develops, manufactures, and markets solutions for the hydraulics and electronics markets. It operates under two business segments: Hydraulics and Electronics. The Hydraulics segment designs and manufactures hydraulic cartridge valves, hydraulic quick release couplings as well as engineers complete hydraulic systems. The Electronics segment designs and manufactures customized electronic controls systems and displays for a variety of end markets including industrial and mobile, recreational and health and wellness. It derives maximum revenue from the Hydraulics Segment.

Helios Technologies: Financial Performance Dissected

Negative Revenue Trend: Examining Helios Technologies's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -7.19% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 30.08%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Helios Technologies's EPS reflects a decline, falling below the industry average with a current EPS of 0.14.

Debt Management: Helios Technologies's debt-to-equity ratio is below the industry average. With a ratio of 0.52, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Helios Technologies's P/E ratio of 32.09 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.55, 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): The company's EV/EBITDA ratio 11.16 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Helios Technologies's Insider Trades.

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