Fredrick DiSanto, Director at Eastern EML, reported an insider buy on June 2, according to a new SEC filing.
What Happened: DiSanto’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 3,923 shares of Eastern. The total transaction value is $88,430.
Monitoring the market, Eastern‘s shares up by 1.64% at $22.37 during Tuesday’s morning.
Delving into Eastern’s Background
The Eastern Co manages industrial businesses that design, manufacture, and sell engineered solutions to industrial markets. The company manages the financial, operational, and strategic performance of its businesses to increase cash generation, operating earnings, and long-term shareholder value. It operates in the United States and Other Countries and generates the majority of its revenue from the United States.
Eastern: Financial Performance Dissected
Revenue Challenges: Eastern’s revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -2.03%. This indicates a decrease in 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.
Evaluating Earnings Performance:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.41%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Eastern’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.32.
Debt Management: Eastern’s debt-to-equity ratio surpasses industry norms, standing at 0.52. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 10.48, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.5, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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 benchmarks at 7.53, Eastern presents an attractive value opportunity.
Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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Why Insider Activity Matters in Finance
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
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.
Unlocking the Meaning of Transaction Codes
When dissecting transactions, the focal point for investors is often those occurring 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 Eastern’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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