Disclosed in the latest SEC filing, a significant insider purchase on May 14, involves Edward P Garden, Director at Middleby MIDD.
What Happened: Garden made a significant move by purchasing 452,397 shares of Middleby as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction’s total worth stands at $65,551,806.
In the Wednesday’s morning session, Middleby‘s shares are currently trading at $150.55, experiencing a up of 0.43%.
About Middleby
The Middleby Corp is engaged in designing, manufacturing, marketing, distribution and service of a broad line of foodservice equipment used in all types of commercial restaurants and institutional kitchens, food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and premium kitchen equipment including ranges, ovens, refrigerators, ventilation, dishwashers and outdoor cooking equipment used in the residential market. The company conducts its business through three principal business segments namely the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. The firm derives majority revenue from Commercial Foodservice Equipment Group segment.
Key Indicators: Middleby’s Financial Health
Revenue Challenges: Middleby’s revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -2.19%. This indicates a decrease 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.
Insights into Profitability:
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Gross Margin: The company faces challenges with a low gross margin of 38.16%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Middleby’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.72.
Debt Management: Middleby’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.65, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Valuation Metrics: A Closer Look
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.74 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.11, 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): With an EV/EBITDA ratio lower than industry averages at 12.18, Middleby could be considered undervalued.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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The Relevance of Insider Transactions
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Navigating the World of Insider Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Middleby’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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