MICHAEL HARTNETT, President and CEO at RBC Bearings RBC, executed a substantial insider sell on September 11, according to an SEC filing.

What Happened: HARTNETT opted to sell 3,000 shares of RBC Bearings, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction’s total worth stands at $852,690.

As of Thursday morning, RBC Bearings shares are down by 0.0%, currently priced at $283.93.

Discovering RBC Bearings: A Closer Look

RBC Bearings Inc is an international manufacturer and marketer of highly engineered precision bearings, components and essential systems for the industrial, defense and aerospace industries. The offering includes plain bearings, roller bearings, ball bearings, and engineered products. The end market is the United States of America. The company has two reportable segments: Aerospace Defense segment represents the end markets for the company’s highly engineered bearings and precision components used in commercial aerospace, defense aerospace, and sea and ground defense applications; and Industrial segment represents the end markets for the company’s engineered bearings and precision components used in various industrial applications. It derives maximum revenue from Industrial Segment.

Key Indicators: RBC Bearings’s Financial Health

Revenue Growth: RBC Bearings displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 4.96%. This indicates a notable 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.

Insights into Profitability:

• Gross Margin: With a high gross margin of 45.29%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): RBC Bearings’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.92.

Debt Management: With a below-average debt-to-equity ratio of 0.42, RBC Bearings adopts a prudent financial strategy, indicating a balanced approach to debt management.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 41.82 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.26 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 19.91 reflects market recognition of RBC Bearings’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Exploring Key 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 RBC Bearings’s Insider Trades.

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