Vice President Of Powell Industries Purchased $86K In Stock

William Marshall Mauney, Jr., Vice President at Powell Industries (NASDAQ:POWL), reported an insider buy on October 1, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled that Jr. made a notable purchase of 300 shares of Powell Industries, valuing at $86,154.

Monitoring the market, Powell Industries's shares up by 1.14% at $320.84 during Thursday's morning.

All You Need to Know About Powell Industries

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.

Powell Industries: A Financial Overview

Revenue Challenges: Powell Industries's revenue growth over 3 months faced difficulties. As of 30 June, 2025, the company experienced a decline of approximately -0.66%. This indicates 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.

Interpreting Earnings Metrics:

  • Gross Margin: With a low gross margin of 30.7%, 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 4.0, Powell Industries showcases strong earnings per share.

Debt Management: With a below-average debt-to-equity ratio of 0.0, Powell Industries adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation:

  • Price to Earnings (P/E) Ratio: The P/E ratio of 22.03 is lower than the industry average, implying a discounted valuation for Powell Industries's stock.

  • Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 3.57, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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 15.6, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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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The Relevance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Powell Industries's Insider Trades.

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

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