Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A significant insider buy by BERND KESSLER, Board Member at Polaris (NYSE:PII), was executed on April 29, and reported in the recent SEC filing.
What Happened: KESSLER demonstrated confidence in Polaris by purchasing 1,801 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $149,987.
Tracking the Tuesday's morning session, Polaris shares are trading at $86.71, showing a down of 0.1%.
Unveiling the Story Behind Polaris Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to new segments of the outdoor lifestyle market. Polaris products retailed through more than 2,500 dealers in North America and through 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.
Polaris's Financial Performance Negative Revenue Trend: Examining Polaris's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -20.34% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Profitability Metrics: Unlocking Value
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 19.02%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): Polaris's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.07.
Valuation Metrics:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 12.71, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The P/S ratio of 0.59 is lower than the industry average, implying a discounted valuation for Polaris's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 7.8, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
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The Importance of Insider Transactions Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
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.
The Insider's Guide to Important Transaction Codes When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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 Polaris's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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