Insider Selling: Mark E. Mikes Unloads $1.15M Of Hubbell Stock

Mark E. Mikes, President Electrical Solutions at Hubbell (NYSE:HUBB), executed a substantial insider sell on November 6, according to an SEC filing.

What Happened: After conducting a thorough analysis, Mikes sold 2,470 shares of Hubbell. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $1,152,253.

The latest market snapshot at Friday morning reveals Hubbell shares down by 0.75%, trading at $458.0.

Delving into Hubbell's Background

Founded in 1888 by Harvey Hubbell, the eponymous company was the conduit through which the pull-chain lamp socket was originally sold. Hubbell has since grown into an electricity transmission and distribution behemoth, housing more than 75 brands that sell components found on power lines, in electrical substations, and in commercial and industrial buildings. The company's primary operations are in the United States, where around 90% of revenue is derived.

Key Indicators: Hubbell's Financial Health

Revenue Growth: Over the 3 months period, Hubbell showcased positive performance, achieving a revenue growth rate of 4.15% as of 30 September, 2025. This reflects a substantial increase 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.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 36.23%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Hubbell's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 4.8.

Debt Management: Hubbell's debt-to-equity ratio surpasses industry norms, standing at 0.58. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Hubbell's P/E ratio of 28.86 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.36, Hubbell's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 19.46, Hubbell presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Transactions Are Important

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

The Insider's Guide to Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Hubbell's Insider Trades.

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