Sell Alert: John A Forbes Cashes Out $263K In Patrick Industries Stock

It was reported on June 17, that John A Forbes, Director at Patrick Industries PATK executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Forbes executed a sale of 2,875 shares of Patrick Industries with a total value of $263,407.

Tracking the Tuesday's morning session, Patrick Industries shares are trading at $90.1, showing a down of 0.0%.

All You Need to Know About Patrick Industries

Patrick Industries Inc makes and sells building products and materials for recreational vehicles and manufactured housing. The company is organized into two segments based on product type: manufacturing and distribution. The manufacturing segment, which generates the majority of revenue, sells laminated and vinyl products that include furniture, shelving, cabinets, bath fixtures, and countertops. The distribution segment sells prefinished wall and ceiling panels, as well as electrical and plumbing products for the RV and manufactured housing industries. One of the firm's RV customers makes up a portion of revenue.

A Deep Dive into Patrick Industries's Financials

Revenue Growth: Over the 3 months period, Patrick Industries showcased positive performance, achieving a revenue growth rate of 7.49% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company faces challenges with a low gross margin of 22.78%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Patrick Industries's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.17.

Debt Management: Patrick Industries's debt-to-equity ratio stands notably higher than the industry average, reaching 1.43. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 21.66, Patrick Industries's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.81 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): Patrick Industries's EV/EBITDA ratio of 10.52 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Exploring the Significance of Insider Trading

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Breaking Down the Significance of 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 Patrick Industries's Insider Trades.

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