A new SEC filing shows that Edward F. CrawfordDirector at Park-Ohio Hldgs PKOHmade a notable insider purchase on August 26th.

What happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Crawford increased his investment in Park-Ohio Hldgs by purchasing 99,075 shares through open market transactions, signaling confidence in the company’s potential. The total value of the transaction is $2,999,991.

Follow-up to Tuesday morning session, Park-Ohio Hldgs Shares are trading at $30.24, down 0.0%.

About Park-Ohio Hldgs

Park-Ohio Holdings Corp is a company engaged in industrial supply chain logistics and diversified manufacturing business. It operates through three business segments namely Supply Technologies, Assembly Components and Engineered Products. Geographically, the group’s business expands in the United States, Asia, Europe, Canada, Mexico and other regions. The company generates most of its revenue from Supply Technologies division, which provides the customer with comprehensive supply management services such as engineering and design support, supplier selection, quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery, and electronic billing services for a range of production components.

Financial Milestones: The Journey of Park-Ohio Hldgs

Sales growth: Park-Ohio Hldgs’ remarkable performance in 3 months is evident. As of June 30, 2024, the company achieved an impressive revenue growth rate of 1.05%. This represents a significant increase in the company’s revenue. Compared to its competitors, the revenue growth lags behind that of its industry peers. The company achieved a growth rate that was below the average of its competitors in the industrial sector.

Explore profitability:

• Gross margin: The company has a low gross margin of 16.92%indicating concerns about cost management and overall profitability compared to its competitors in the industry.

• Earnings per share (EPS): Park-Ohio Hldgs’ earnings per share are significantly above the industry average. The company has achieved a positive earnings trend with current earnings per share of 0.95.

Debt management: Park-Ohio Hldgs’ debt ratio is significantly above the industry average. With a ratio of 2.48the company is more dependent on debt, which indicates a higher financial risk.

Market valuation:

• Price-earnings ratio (P/E): With a below-average P/E ratio of 9.08The stock has an attractive valuation and may offer a buying opportunity.

• Price-to-sales ratio (P/S): The current P/S ratio of 0.23 is below the industry average, suggesting possible undervaluation and an investment opportunity for those considering sales performance.

• EV/EBITDA analysis (enterprise value in relation to earnings before interest, taxes, depreciation and amortization): With an EV/EBITDA ratio below the industry average of 8.27Park-Ohio Hldgs could be considered undervalued.

Market capitalization perspectives: The company’s market capitalization is below the industry average, indicating a relatively small size compared to peers. This positioning can be influenced by factors such as perceived growth potential or operating size.

Trade stocks online now, commission-free, with Charles Schwab, a trusted and comprehensive investment firm.

Why you should pay attention to insider transactions

Investors should consider insider transactions as part of a complex analysis and not rely on them exclusively in making decisions.

In the legal field, an “insider” is defined under Section 12 of the Securities Exchange Act of 1934 as any officer, director, or beneficial owner who owns more than ten percent of a company’s stock. This includes senior executives and large hedge funds. These insiders must disclose their transactions in a Form 4, which must be filed within two business days of the transaction.

In particular, when a company insider makes a new purchase, this is considered an indicator of his positive expectations regarding the stock.

Conversely, insider sales do not necessarily indicate a pessimistic attitude towards the stock and can have various reasons.

Understanding important transaction codes

When analyzing transactions, investors often focus on open market transactions, which are detailed in Table I of Form 4. P in Box 3 indicates a purchase, while S means a sale. Transaction code C refers to the conversion of an option and the transaction code A means a grant, assignment or other acquisition of securities of the company.

View the full list of Park-Ohio Hldgs insider trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.