Sell Alert: Andy L Nemeth Cashes Out $2.77M In Patrick Industries Stock

Andy L Nemeth, Chief Executive Officer at Patrick Industries PATK, executed a substantial insider sell on August 15, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Nemeth sold 25,000 shares of Patrick Industries. The total transaction value is $2,766,927.

Patrick Industries's shares are actively trading at $112.51, experiencing a down of 0.0% during Friday's morning session.

Delving into Patrick Industries's Background

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.

Patrick Industries: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Patrick Industries showcased positive performance, achieving a revenue growth rate of 3.04% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 23.93%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Patrick Industries's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.0.

Debt Management: With a high debt-to-equity ratio of 1.28, Patrick Industries faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 30.57, Patrick Industries's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.01 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): A high EV/EBITDA ratio of 12.6 positions the company as being more valued compared to industry benchmarks.

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.

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Exploring the Significance of Insider Trading

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.

Transaction Codes To Focus On

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.