Exec Vice President Of Powell Industries Purchased $172K In Stock

A notable insider purchase on October 1, was reported by Michael W. Metcalf, Exec Vice President at Powell Industries (NASDAQ:POWL), based on the most recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled that Metcalf made a notable purchase of 600 shares of Powell Industries, valuing at $172,308.

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

Delving into Powell Industries's Background

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's Financial Performance

Revenue Growth: Powell Industries's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2025, the company experienced a revenue decline of approximately -0.66%. This indicates a decrease in the company's 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.

Navigating Market 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 P/S ratio of 3.57 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): With a lower-than-industry-average EV/EBITDA ratio of 15.6, Powell Industries presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

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.

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

The Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.