Linda Harty, Director at Chart Industries GTLS, disclosed an insider purchase on September 16, based on a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Harty purchased 5,000 shares of Chart Industries. The total transaction amounted to $240,229.

Chart Industries‘s shares are actively trading at $120.83, experiencing a up of 3.02% during Tuesday’s morning session.

Discovering Chart Industries: A Closer Look

Chart Industries provides a variety of cryogenic equipment for storage, distribution, and other processes within the industrial gas and liquefied natural gas industries. It also provides natural gas processing solutions for the natural gas industry and specialty products that serve a variety of spaces, including hydrogen, biofuels, cannabis, and water treatment. The firm acquired Howden in a significant deal in early 2023, roughly doubling the size of the company.

Understanding the Numbers: Chart Industries’s Finances

Revenue Growth: Over the 3 months period, Chart Industries showcased positive performance, achieving a revenue growth rate of 14.56% as of 30 June, 2024. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company faces challenges with a low gross margin of 33.8%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Chart Industries’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.23.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.48, caution is advised due to increased financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 52.36 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.48 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 11.48, Chart Industries’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

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 Pay Attention to Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

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

Examining transactions, investors often concentrate on those unfolding 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 Chart Industries’s Insider Trades.

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