Jennings Peter Scott, Board Member at Olympic Steel (NASDAQ:ZEUS), reported an insider buy on December 10, according to a new SEC filing.
What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Scott purchased 5,030 shares of Olympic Steel, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $200,646.
At Thursday morning, Olympic Steel shares are up by 0.05%, trading at $40.8.
Get to Know Olympic Steel Better
Olympic Steel Inc provides metals processing and distribution services in the United States. The company operates in three reportable segments; specialty metals flat products, carbon flat products, and tubular and pipe products. It specializes in the processing and distribution of large volumes of carbon, aluminum, and stainless steel flat-rolled sheet, coils, plates, bars, and fabricated parts. The group serves various industries such as industrial machinery and equipment manufacturers, automobile manufacturers and suppliers, and transportation equipment manufacturers. The company generates majority of the revenue from carbon flat products.
Olympic Steel's Economic Impact: An Analysis
Revenue Growth: Olympic Steel's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 4.4%. This indicates 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 Materials sector.
Evaluating Earnings Performance:
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Gross Margin: With a high gross margin of 23.97%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): Olympic Steel's EPS is below the industry average. The company faced challenges with a current EPS of 0.18. This suggests a potential decline in earnings.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.49, caution is advised due to increased financial risk.
Financial Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 34.9 is lower than the industry average, implying a discounted valuation for Olympic Steel's stock.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.25, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 10.61, 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 Impact of Insider Transactions on Investments
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
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.
Deciphering Transaction Codes in Insider Filings
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Olympic Steel's Insider Trades.
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