Edward F Crawford Boosts Confidence With $3.00M Purchase Of Park-Ohio Hldgs Stock

A new SEC filing reveals that Edward F Crawford, Director at Park-Ohio Hldgs PKOH, made a notable insider purchase on August 26,.

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

Tracking the Tuesday's morning session, Park-Ohio Hldgs shares are trading at $30.24, showing a down of 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 in three business segments namely Supply Technologies, Assembly Components and Engineered Products. Geographically, the business of the group is amplifying across the region of the United States, Asia, Europe, Canada, Mexico and others. The company derives most of the revenue from the Supply Technologies segment which provides the customer with total 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: Park-Ohio Hldgs's Journey

Revenue Growth: Park-Ohio Hldgs's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 1.05%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 16.92%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Park-Ohio Hldgs's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.95.

Debt Management: Park-Ohio Hldgs's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.48, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 9.08, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.23 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 8.27, Park-Ohio Hldgs could be considered undervalued.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Pay Attention to Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 Park-Ohio Hldgs's Insider Trades.

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