In a recent transaction, Daniel S. Kelly, Vice President, General Counsel, and Secretary of Atkore Inc. (NYSE:ATKR), sold a significant portion of the company's common stock. According to the SEC filing, Kelly sold 13,071 shares on November 26, 2024, at an approximate weighted average price of $95.74 per share. This sale amounts to a total transaction value of approximately $1.25 million.
Following this transaction, Kelly retains ownership of 27,527.6128 shares, which includes unvested restricted stock units and accrued dividend equivalent units. The shares were sold at prices ranging from $95.28 to $96.2350, as noted in the filing.
In other recent news, Atkore International Group Inc (NYSE:ATKR). reported mixed financial results for Q4 of FY2024, with net sales reaching $3.2 billion, adjusted earnings per share at $14.48, and adjusted EBITDA of $772 million. The company also announced a significant reduction in its forecasted EBITDA for fiscal year 2025 by 23% due to increased competition and import pressures, particularly in the PVC and steel conduit markets. Analysts from Loop Capital, RBC (TSX:RY) Capital Markets, and B.Riley have revised their outlooks on Atkore's stock, citing concerns over PVC pricing and competitive pressures. Despite these challenges, Atkore has initiated growth strategies focusing on solar torque tubes, water-related products, global mega projects, and regional service centers. The company anticipates net sales between $2.9 billion and $3.2 billion for FY2025, with adjusted EBITDA projected to be between $475 million and $525 million. Atkore has also demonstrated a commitment to shareholder returns, having repurchased over $1.3 billion in stock and introduced a quarterly cash dividend. These are the recent developments for Atkore.
InvestingPro Insights
While Daniel S. Kelly's recent stock sale might raise eyebrows, it's essential to consider Atkore Inc.'s (NYSE:ATKR) broader financial picture. According to InvestingPro data, Atkore boasts a remarkably low P/E ratio of 7.28, suggesting the stock may be undervalued relative to its earnings. This valuation metric aligns with an InvestingPro Tip indicating that Atkore is "trading at a low earnings multiple."
Despite the recent insider sale, another InvestingPro Tip reveals that "management has been aggressively buying back shares," which often signals confidence in the company's future prospects and can potentially boost shareholder value. This buyback activity is particularly noteworthy given Atkore's market capitalization of $3.25 billion.
Investors should also note that Atkore's stock has experienced a significant return of 12.83% over the last week, as per InvestingPro data. This recent uptick could indicate positive market sentiment, despite the longer-term challenges reflected in the 38.93% decline over the past six months.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Atkore, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable in contextualizing insider transactions and evaluating the stock's potential.
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