Options Exercise: John L Stauch At Pentair Realizes $11.22M

A significant insider transaction involving the exercise of company stock options was reported on April 28, by John L Stauch, President & CEO at Pentair PNR, as per the latest SEC filing.

What Happened: Stauch, President & CEO at Pentair, made a strategic move by exercising stock options for 235,620 shares of PNR as detailed in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission. The transaction value amounted to $11,224,695.

The Tuesday morning update indicates Pentair shares down by 0.48%, currently priced at $89.56. At this value, Stauch's 235,620 shares are worth $11,224,695.

All You Need to Know About Pentair

Pentair is a global leader in the water treatment industry, with 10,000 employees and a presence in 25 countries. Pentair's business is organized into three segments: pool, water technologies, and flow. The company offers a wide range of water solutions, including energy-efficient swimming pool equipment, filtration solutions, and commercial and industrial pumps. Pentair generated approximately $4.1 billion in revenue in 2024.

Pentair: A Financial Overview

Revenue Challenges: Pentair's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -0.67%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 39.91%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Pentair exhibits below-average bottom-line performance with a current EPS of 0.94.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.54.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 23.25 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.68 is above industry norms, reflecting an elevated valuation for Pentair'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 17.59 reflects market recognition of Pentair's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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

Uncovering the Importance of Insider Activity

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

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Pentair's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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