Andrew Ross, Chief Operating Officer at Parker Hannifin (NYSE:PH), reported an insider sell on December 15, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Ross sold 2,488 shares of Parker Hannifin. The total transaction amounted to $2,226,298.
As of Tuesday morning, Parker Hannifin shares are up by 0.15%, currently priced at $884.76.
Unveiling the Story Behind Parker Hannifin
Parker Hannifin started out in 1917 as Parker Appliance, selling pneumatic brakes. Through the acquisition of branded components, the firm has expanded into aerospace engines, agricultural and construction machinery, freight and passenger vehicles, and industrial automation equipment. Within these larger systems, Parker sells a wide array of small, critical pieces such as hydraulic, electromechanical, climate control, and filtration components. Many of its products are designed to work together, resulting in a high rate of cross-selling.
Parker Hannifin's Economic Impact: An Analysis
Revenue Growth: Parker Hannifin's remarkable performance in 3 months is evident. As of 30 September, 2025, the company achieved an impressive revenue growth rate of 3.67%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Profitability Metrics:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 37.51%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Parker Hannifin's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 6.39.
Debt Management: With a high debt-to-equity ratio of 0.75, Parker Hannifin faces challenges in effectively managing its debt levels, indicating potential financial strain.
Valuation Metrics:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 31.47 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 5.72 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 21.75, Parker Hannifin demonstrates a robust market valuation, outperforming industry benchmarks.
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
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Delving Into the Significance of Insider Transactions
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
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.
Essential Transaction Codes Unveiled
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 Parker Hannifin's Insider Trades.
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