Frederick N Mudge Of Powell Industries Shows Optimism, Buys $114K In Stock

It was revealed in a recent SEC filing that Frederick N Mudge, Vice President at Powell Industries (NASDAQ:POWL) made a noteworthy insider purchase on October 1,.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Mudge purchased 400 shares of Powell Industries, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $114,872.

Tracking the Thursday's morning session, Powell Industries shares are trading at $308.8, showing a down of 2.65%.

Discovering Powell Industries: A Closer Look

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.

Financial Insights: Powell Industries

Decline in Revenue: Over the 3 months period, Powell Industries faced challenges, resulting in a decline of approximately -0.66% in revenue growth as of 30 June, 2025. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Interpreting Earnings Metrics:

• 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 outshines the industry average, indicating a strong bottom-line trend 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.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: Powell Industries's P/E ratio of 22.03 is below the industry average, suggesting the stock may be undervalued.

• 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): Powell Industries's EV/EBITDA ratio, lower than industry averages at 15.6, indicates attractively priced shares.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Uncovering the Importance of Insider Activity

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Powell Industries'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.