AAON , Inc. (NASDAQ:AAON) Vice President of Business Technology, Robert Teis, recently sold a significant portion of his holdings in the company. According to a recent filing, Teis sold 3,369 shares of AAON common stock on November 12, 2024, at a weighted average price of $136.29 per share. This transaction amounted to a total of $459,161.
Following this sale, Teis retains direct ownership of 10,650 shares. Additionally, he holds 2,128 shares indirectly through a 401(k) plan. The sale was executed in multiple trades with prices ranging from $135.70 to $136.77, as noted in the filing.
Teis also holds various stock options, including 8,175 shares at an exercise price of $24.50 and 20,475 shares at $27.58, among others, indicating his continued involvement with the company through these derivative securities.
In other recent news, AAON, Inc., a key player in the heating and cooling products industry, reported a notable increase in its third-quarter 2024 financial results. The company's earnings showcased a 4.9% rise in revenue, reaching $327.3 million, and an 8.6% jump in diluted earnings per share to $0.63. Despite a slight contraction in gross margin to 34.9%, AAON managed to achieve a 25.3% adjusted EBITDA margin, marking one of its most robust quarters.
A significant surge in demand, primarily for data center equipment, resulted in a 27% year-to-date increase in bookings and a 32% growth in total backlog from the previous year. AAON is currently expanding its production capacity with new facilities in Memphis, Tennessee, and expansions in Oregon and Texas. Although the company anticipates a dip in demand in the short term, it remains hopeful for recovery and growth heading into 2025.
These recent developments reflect AAON's strategic approach to navigate industry shifts while capitalizing on growing market segments. The company's financial foundation and expansion plans suggest a continued growth trajectory in the HVAC industry.
InvestingPro Insights
AAON's recent stock performance and valuation metrics provide additional context to the insider sale by Vice President Robert Teis. According to InvestingPro data, AAON has experienced a remarkable 134.44% price total return over the past year, with a significant 82.82% increase in the last six months alone. This strong performance has pushed the stock to 96.25% of its 52-week high, trading at $137.73 as of the last close.
The company's robust financial health is evident from its ability to maintain dividend payments for 19 consecutive years, as highlighted by an InvestingPro Tip. However, investors should note that AAON is trading at elevated multiples, with a P/E ratio of 59.23 and a Price to Book ratio of 14.1, suggesting a premium valuation.
Another InvestingPro Tip indicates that AAON's RSI suggests the stock is in overbought territory, which aligns with the recent insider sale and the stock's strong performance. This could signal that the stock might be due for a correction or consolidation phase.
For investors seeking a more comprehensive analysis, InvestingPro offers 21 additional tips for AAON, providing a deeper understanding of the company's financial position and market outlook.
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