Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On April 29, JOHN WIEHOFF, Director at Polaris (NYSE:PII) executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that WIEHOFF purchased 1,801 shares of Polaris. The total transaction amounted to $149,987.
At Tuesday morning, Polaris shares are down by 0.1%, trading at $86.71.
Get to Know Polaris Better Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to new segments of the outdoor lifestyle market. Polaris products retailed through more than 2,500 dealers in North America and through 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.
Understanding the Numbers: Polaris's Finances Revenue Growth: Polaris's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -20.34%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Exploring Profitability:
- Gross Margin: With a low gross margin of 19.02%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): Polaris's EPS is below the industry average. The company faced challenges with a current EPS of 0.07. This suggests a potential decline in earnings.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: Polaris's P/E ratio of 12.71 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: The current P/S ratio of 0.59 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 7.8, Polaris could be considered undervalued.
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The Impact of Insider Transactions on Investments In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
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.
Exploring Key Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 signals 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 Polaris's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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