Gary D. Fields, CEO of AAON , Inc. (NASDAQ:AAON), recently executed a significant transaction involving the company's common stock. On November 15, Fields sold 35,000 shares at an average price of $132.03 per share, totaling approximately $4.62 million. This transaction was part of a broader set of financial activities reported in a Form 4 filing with the Securities and Exchange Commission.
In addition to the sale, Fields exercised stock options to acquire 35,000 shares at a price of $31.69 per share. Following these transactions, Fields holds 64,295 shares directly. The Form 4 filing also disclosed Fields' indirect holdings, which include 6,750 shares as a custodian for his grandchildren and 5,422 shares in a 401(k) plan.
These transactions provide insight into the financial activities of AAON's leadership, reflecting both the acquisition and disposal of company shares.
In other recent news, AAON, Inc. reported a growth and expansion in its Q3 2024 financial results. The company disclosed a 4.9% increase in revenue to $327.3 million and an 8.6% rise in diluted earnings per share to $0.63. Despite a decrease in gross margin to 34.9%, AAON achieved a 25.3% adjusted EBITDA margin, marking one of its strongest quarters.
The company also revealed a significant demand surge, particularly for data center equipment, leading to a 27% year-to-date increase in bookings and a 32% increase in total backlog from the previous year. AAON is currently expanding its production capacity and anticipates a softening demand in the short term but remains optimistic for recovery and growth into 2025.
In other developments, AAON has partnered with industry leaders to meet the U.S. Department of Energy's Better Buildings Commercial Building Heat Pump Technology Challenge. This collaboration includes Oklahoma State University, Montana State University, the University of Maryland, and Copeland. These recent developments indicate AAON's commitment to innovation and growth.
InvestingPro Insights
AAON's recent stock performance and financial metrics offer additional context to CEO Gary D. Fields' recent transactions. According to InvestingPro data, AAON has seen a remarkable 110.1% price total return over the past year, with a particularly strong 75.76% return in the last six months. This impressive performance aligns with the timing of Fields' stock sale at $132.03 per share, suggesting he may be capitalizing on the company's recent success.
The company's financial health appears robust, with a market capitalization of $10.67 billion and a revenue of $1.21 billion in the last twelve months as of Q3 2024. AAON's operating income margin stands at a healthy 20.88%, indicating efficient operations.
However, investors should note that AAON is trading at a high P/E ratio of 56.14, which is significantly above average for most industries. This high valuation is reflected in two key InvestingPro Tips: "Trading at a high earnings multiple" and "Trading at a high P/E ratio relative to near-term earnings growth." These tips suggest that while AAON has performed well, its current stock price may be pricing in substantial future growth expectations.
It's worth noting that AAON has maintained dividend payments for 19 consecutive years, demonstrating a commitment to shareholder returns. However, with a current dividend yield of only 0.24%, income-focused investors may find the stock less attractive from a yield perspective.
For those interested in a deeper analysis, InvestingPro offers 18 additional tips for AAON, providing a more comprehensive view of the company's financial position and market performance.
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