It was reported on June 11, that MICHAEL HARTNETT, President and CEO at RBC Bearings RBC executed a significant insider sell, according to an SEC filing.
What Happened: HARTNETT’s decision to sell 31,978 shares of RBC Bearings was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $12,156,447.
RBC Bearings‘s shares are actively trading at $375.59, experiencing a down of 0.0% during Thursday’s morning session.
Get to Know RBC Bearings Better
RBC Bearings Inc is an international manufacturer and marketer of engineered precision bearings, components, and essential systems for the industrial, defense, and aerospace industries. The offering includes plain bearings, roller bearings, ball bearings, and engineered products. The company has two reportable segments: Industrial, which derives maximum revenue, and Aerospace/Defense. The Aerospace/Defense segment represents the end markets for the company’s engineered bearings and precision components used in commercial aerospace, defense aerospace, and sea and ground defense applications; and the Industrial segment represents the end markets for its products used in various industrial applications. Geographically, the company generates a majority of its revenue from the United States.
RBC Bearings: A Financial Overview
Revenue Growth: Over the 3 months period, RBC Bearings showcased positive performance, achieving a revenue growth rate of 5.8% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.
Profitability Metrics: Unlocking Value
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Gross Margin: The company excels with a remarkable gross margin of 44.19%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.32, RBC Bearings showcases strong earnings per share.
Debt Management: With a below-average debt-to-equity ratio of 0.34, RBC Bearings adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Metrics: A Closer Look
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Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 48.78, RBC Bearings’s stock is perceived as being overvalued in the market.
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Price to Sales (P/S) Ratio: The current P/S ratio of 6.97 is above industry norms, reflecting an elevated valuation for RBC Bearings’s stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): RBC Bearings’s EV/EBITDA ratio, surpassing industry averages at 26.06, positions it with an above-average valuation in the market.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Why Insider Transactions Are Important
Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
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 RBC Bearings’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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