209K Reasons To Be Bullish On Franklin Electric Stock

It was revealed in a recent SEC filing that Jonathan M Grandon, Chief Administrative Officer at Franklin Electric FELE made a noteworthy insider purchase on April 16,.

What Happened: Grandon’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, involves purchasing 2,356 shares of Franklin Electric. The total transaction value is $209,990.

Franklin Electric shares are trading down 0.0% at $87.19 at the time of this writing on Thursday morning.

Get to Know Franklin Electric Better

Franklin Electric Co Inc designs, manufactures, and distributes water and fuel pumping systems, composed of submersible motors, pumps, electronic controls, water treatment systems, and related parts and equipment. It has three segments; The Water Systems segment designs, manufactures and sells motors, pumps, drives, electronic controls, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater, The Energy Systems segment designs, manufactures and sells pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in fueling system applications and the Distribution segment sells and provides presale support and specifications to the installing contractors.

Franklin Electric’s Financial Performance

Positive Revenue Trend: Examining Franklin Electric’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.7% as of 31 December, 2024, showcasing a substantial increase in 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.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 33.81%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Franklin Electric’s EPS reflects a decline, falling below the industry average with a current EPS of 0.73.

Debt Management: Franklin Electric’s debt-to-equity ratio is below the industry average at 0.15, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.59 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.01 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): The company’s EV/EBITDA ratio 13.47 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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

Why Insider Transactions Are Important

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

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.

The Insider’s Guide to Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 Franklin Electric’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.