In a recent transaction, Russell M. Sarachek, a director at Frequency Electronics Inc (NASDAQ:FEIM), acquired a significant number of shares in the company. The purchase, which took place on April 19, 2024, involved 1,602 shares at a weighted average price of $9.51 per share, totaling over $15,235.
The transaction was executed in two parts, with 300 shares bought at $9.55 and the remaining 1,302 shares at $9.50 each. Following the purchase, Sarachek now owns a total of 435,347 shares of Frequency Electronics directly.
Frequency Electronics Inc, a company specializing in instruments for measuring and testing of electricity and electronic signals, is based in Mitchel Field, New York. This recent acquisition by a member of the company's board is a noteworthy event for investors and market watchers, reflecting a positive sentiment from the director regarding the company's prospects.
Investors often keep a close eye on insider transactions as they can provide insights into the company's performance and potential future direction. The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission on April 25, 2024.
InvestingPro Insights
Following the news of insider acquisition by Russell M. Sarachek, Frequency Electronics Inc (NASDAQ:FEIM) has shown several promising indicators that could be of interest to current and potential investors. According to InvestingPro, the company is trading at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 28.19. This could suggest that the company's stock is undervalued compared to its earnings potential in the near term.
In addition to the attractive P/E ratio, Frequency Electronics boasts a strong balance sheet, holding more cash than debt. This financial stability is further underscored by the fact that the company's liquid assets exceed its short term obligations. These factors combined contribute to the positive outlook on the company's ability to manage its finances in the short term.
From a performance standpoint, Frequency Electronics has been profitable over the last twelve months, with a reported operating income of $2.92M USD and a solid gross profit margin of 31.01%. The company has also experienced a significant revenue growth of 38.93% in the last twelve months as of Q3 2024, indicating a robust upward trend in its financial performance.
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It's worth noting that Frequency Electronics does not pay a dividend to shareholders, which may be a consideration for income-focused investors. However, the company's large price uptick over the last six months, at 28.53%, may appeal to growth-oriented investors looking for capital appreciation.
With these insights in mind, investors may want to keep a close eye on Frequency Electronics as it continues to navigate the competitive landscape of the electronics industry. The company's next earnings date is set for July 18, 2024, which will likely provide further clarity on its trajectory and financial health.
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