On June 5, a substantial insider purchase was made by Todd M Cleveland, Director at Patrick Industries PATK, as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Cleveland purchased 3,000 shares of Patrick Industries. The total transaction amounted to $247,850.
Tracking the Thursday’s morning session, Patrick Industries shares are trading at $87.21, showing a up of 0.41%.
About Patrick Industries
Patrick Industries Inc makes and sells building products and materials for recreational vehicles and manufactured housing. The company is organized into two segments based on product type: manufacturing and distribution. The manufacturing segment, which generates the majority of revenue, sells laminated and vinyl products that include furniture, shelving, cabinets, bath fixtures, and countertops. The distribution segment sells prefinished wall and ceiling panels, as well as electrical and plumbing products for the RV and manufactured housing industries. One of the firm’s RV customers makes up a portion of revenue.
Unraveling the Financial Story of Patrick Industries
Positive Revenue Trend: Examining Patrick Industries’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.49% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Profitability Metrics: Unlocking Value
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.78%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Patrick Industries’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.17.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.43, caution is advised due to increased financial risk.
Evaluating Valuation:
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Price to Earnings (P/E) Ratio: Patrick Industries’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 20.88.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.78 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on 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 10.27, Patrick Industries demonstrates a robust market valuation, outperforming industry benchmarks.
Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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Exploring the Significance of Insider Trading
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Breaking Down the Significance of 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 Patrick Industries’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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