It was revealed in a recent SEC filing that Joseph B Hayek, EVP and CFO at Worthington Enterprises WOR made a noteworthy insider purchase on October 15,.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Hayek purchased 2,500 shares of Worthington Enterprises. The total transaction amounted to $100,525.

The latest update on Wednesday morning shows Worthington Enterprises shares down by 0.0%, trading at $40.31.

Discovering Worthington Enterprises: A Closer Look

Worthington Enterprises Inc is a designer and manufacturer of products sold to consumers, through retail channels, in the tools, outdoor living and celebrations market categories as well as a wide array of specialized building products that serve customers in the residential and non-residential construction markets, including ceiling suspension systems and light gauge metal framing products, as well as wholly-owned and consolidated operations that produce pressurized containment solutions for heating, cooking and cooling applications, among others. It operates under two reportable operating segments: Consumer Products and Building Products. It derives majority of the revenue from Building Products segment.

Worthington Enterprises: Delving into Financials

Revenue Growth: Worthington Enterprises’s revenue growth over a period of 3 months has faced challenges. As of 31 August, 2024, the company experienced a revenue decline of approximately -17.51%. This indicates a decrease in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 24.29%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Worthington Enterprises’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.49.

Debt Management: Worthington Enterprises’s debt-to-equity ratio is below the industry average. With a ratio of 0.36, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 62.98 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: The current P/S ratio of 1.71 is above industry norms, reflecting an elevated valuation for Worthington Enterprises’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 16.2 reflects market recognition of Worthington Enterprises’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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Uncovering the Importance of Insider Activity

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Deciphering Transaction Codes in Insider Filings

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 Worthington Enterprises’s Insider Trades.

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