Terry B McKertcher Implements A Sell Strategy: Offloads $389K In Powell Industries Stock

Making a noteworthy insider sell on August 13, Terry B McKertcher, Vice President at Powell Industries POWL, is reported in the latest SEC filing.

What Happened: McKertcher's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 1,500 shares of Powell Industries. The total transaction value is $389,440.

In the Thursday's morning session, Powell Industries's shares are currently trading at $250.53, experiencing a down of 3.53%.

Get to Know Powell Industries Better

Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States, and the rest from Canada, Europe, Asia Pacific, and other regions.

Understanding the Numbers: Powell Industries's Finances

Negative Revenue Trend: Examining Powell Industries's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -0.66% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 30.7%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Powell Industries's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 4.0.

Debt Management: Powell Industries's debt-to-equity ratio is below the industry average at 0.0, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 18.04 is lower than the industry average, implying a discounted valuation for Powell Industries's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.92 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 12.41, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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

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Exploring the Significance of Insider Trading

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

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Unlocking the Meaning of 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 Powell Industries's Insider Trades.

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