Revealing a significant insider sell on September 16, Michael Whitehead, SVP at Lincoln Electric Holdings LECO, as per the latest SEC filing.
What Happened: After conducting a thorough analysis, Whitehead sold 1,000 shares of Lincoln Electric Holdings. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $233,228.
Monitoring the market, Lincoln Electric Holdings's shares down by 0.0% at $233.98 during Wednesday's morning.
Delving into Lincoln Electric Holdings's Background
Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. Its portfolio includes arc-welding solutions, plasma and oxy-fuel cutting systems, and brazing and soldering alloys, as well as automation solutions. Lincoln Electric serves clients in the general fabrication, heavy industries, automotive, construction, shipbuilding, energy, and process industries, among other end markets. Based in Cleveland, Lincoln Electric has operations in 19 countries and has 11,000 employees worldwide. The company generated roughly $4 billion in sales in 2024.
A Deep Dive into Lincoln Electric Holdings's Financials
Positive Revenue Trend: Examining Lincoln Electric Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.56% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.
Key Profitability Indicators:
-
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 37.25%, indicating potential difficulties in maintaining profitability compared to its peers.
-
Earnings per Share (EPS): Lincoln Electric Holdings's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 2.58.
Debt Management: With a high debt-to-equity ratio of 0.91, Lincoln Electric Holdings faces challenges in effectively managing its debt levels, indicating potential financial strain.
Evaluating Valuation:
-
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 26.29 is lower than the industry average, indicating potential undervaluation for the stock.
-
Price to Sales (P/S) Ratio: With a P/S ratio of 3.23 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): Lincoln Electric Holdings's EV/EBITDA ratio of 17.83 exceeds industry averages, indicating a premium valuation in the market
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.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Uncovering the Importance of Insider Activity
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
A Deep Dive into Insider Transaction Codes
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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 Lincoln Electric Holdings's Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.