Eastern Director Makes $113K Stock Purchase

Fredrick DiSanto, Director at Eastern EML, reported an insider buy on August 19, according to a new SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, DiSanto purchased 5,000 shares of Eastern, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $113,570.

Eastern's shares are actively trading at $22.14, experiencing a down of 0.0% during Wednesday's morning session.

Unveiling the Story Behind Eastern

The Eastern Co manages industrial businesses that design, manufacture, and sell engineered solutions to industrial markets. The company manages the financial, operational, and strategic performance of its businesses to increase cash generation, operating earnings, and long-term shareholder value. It operates in the United States and Other Countries and generates the majority of its revenue from the United States.

Breaking Down Eastern's Financial Performance

Negative Revenue Trend: Examining Eastern's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -3.31% in revenue growth, reflecting 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.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 23.32%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.56, Eastern showcases strong earnings per share.

Debt Management: Eastern's debt-to-equity ratio is below the industry average at 0.46, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 12.37 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.51 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): Eastern's EV/EBITDA ratio at 8.32 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

A Closer Look at Important 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 Eastern's Insider Trades.

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