Neil Gagnon, a significant shareholder of Power Solutions International, Inc. (NASDAQ:PSIX), has recently increased his stake in the company through a series of stock purchases. On April 30, 2024, Gagnon acquired a total of 77,609 shares of common stock at a price of $2.00 each, amounting to an investment of $155,236.
The transactions, disclosed in a recent SEC filing, indicate a strong vote of confidence from Gagnon in the future of Power Solutions International, a company specializing in engines and turbines. As per the filing, these shares were acquired in various capacities, including direct ownership and indirect ownership through entities where Gagnon holds a managing or trustee role.
Gagnon's indirect purchases included 48,683 shares by the Managing Member as General Partner of Gagnon Investment Associates, 1,095 shares as Trustee of Gagnon Securities LLC Profit Sharing Plan, 15,689 shares directly, 5,007 shares directly, and 7,144 shares by a Limited Partner of the Family Partnership. Following these transactions, Gagnon's combined ownership in Power Solutions International stands at several hundred thousand shares across different entities.
The reported transactions are part of Gagnon's investment strategy, and his role as the Chief Executive Officer of Gagnon Advisors, LLC and managing member and principal owner of Gagnon Securities LLC allows him to manage investments on behalf of various accounts with discretion.
Investors often look at insider buying as an indicator of a company's prospects, as insiders may buy stock based on their expectations of future performance. Neil Gagnon's recent purchases could signal his optimistic outlook for Power Solutions International's growth and profitability.
For those tracking insider transactions, the recent activity by Gagnon provides an interesting data point to consider when evaluating Power Solutions International's investment potential.
InvestingPro Insights
Amidst the insider buying activities by Neil Gagnon, a significant shareholder of Power Solutions International, Inc. (NASDAQ:PSIX), investors might find the real-time data and insights from InvestingPro particularly illuminating. According to InvestingPro, Power Solutions International has a notably low Price-to-Earnings (P/E) ratio of just 1.87, suggesting that the stock could be undervalued relative to its earnings. This aligns with an InvestingPro Tip that highlights the company as trading at a low earnings multiple.
Moreover, the company's performance over the last twelve months shows profitability, with a Basic and Diluted EPS (Continuing Operations) of $1.15. This is corroborated by another InvestingPro Tip indicating that analysts predict the company will be profitable this year. However, it's worth noting that despite these positive signals, the company's stock price has experienced a decline of 27.12% over the past year, which might raise concerns over its market sentiment.
InvestingPro also provides a fair value estimate of $2.54 for PSIX, which is higher than the previous close price of $2.15. This suggests potential upside for investors considering the stock. Additionally, for those seeking more depth, there are 6 more InvestingPro Tips available on the InvestingPro platform.
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