Franklin Electric Director Sold $2.17M In Company Stock

Disclosed on May 27, David M Wathen, Director at Franklin Electric FELE, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Wathen executed a sale of 25,000 shares of Franklin Electric with a total value of $2,167,500.

During Wednesday's morning session, Franklin Electric shares down by 0.0%, currently priced at $87.29.

Discovering Franklin Electric: A Closer Look

Franklin Electric Co Inc designs, manufactures, and distributes water and fuel pumping systems, composed of submersible motors, pumps, electronic controls, water treatment systems, and related parts and equipment. It has three segments; The Water Systems segment designs, manufactures and sells motors, pumps, drives, electronic controls, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater, The Energy Systems segment designs, manufactures and sells pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in fueling system applications and the Distribution segment sells and provides presale support and specifications to the installing contractors.

Franklin Electric's Economic Impact: An Analysis

Revenue Challenges: Franklin Electric's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -1.23%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Insights into Profitability:

• Gross Margin: With a low gross margin of 36.0%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Franklin Electric's EPS reflects a decline, falling below the industry average with a current EPS of 0.67.

Debt Management: Franklin Electric's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.17.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.79 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.01 is lower than the industry average, implying a discounted valuation for Franklin Electric's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Franklin Electric's EV/EBITDA ratio at 13.98 suggests potential undervaluation, falling below industry averages.

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

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Delving Into the Significance of Insider Transactions

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

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial 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 Franklin Electric's Insider Trades.

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