Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Norman H Asbjornson, Director at AAON (NASDAQ:AAON), executed a substantial insider sell on December 7, according to an SEC filing.
What Happened: Asbjornson's decision to sell 99,884 shares of AAON was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $6,340,636.
The latest market snapshot at Friday morning reveals AAON shares down by 0.0%, trading at $65.23.
About AAON AAON Inc is a manufacturer of air-conditioning and heating equipment. The products include rooftop units, chillers, packaged outdoor mechanical rooms, air-handling units, makeup air units, energy-recovery units, condensing units, geothermal heat pumps, and self-contained units and coils. AAON's products serve the commercial and industrial new construction and replacement markets, primarily in North America.
AAON: Delving into Financials Revenue Growth: AAON's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 28.59%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.
Profitability Metrics: Unlocking Value
- Gross Margin: With a low gross margin of 37.22%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): AAON's EPS is below the industry average. The company faced challenges with a current EPS of 0.59. This suggests a potential decline in earnings.
Exploring Valuation Metrics Landscape:
- Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 31.82 suggests caution, as the stock may be overvalued in the eyes of investors.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.85 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 21.27 positions the company as being more valued compared to industry benchmarks.
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The Impact of Insider Transactions on Investments Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Deciphering Transaction Codes in Insider Filings Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of AAON's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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