WOOD DALE, Ill.—Gary S. Winemaster, a significant shareholder in Power Solutions International, Inc. (NASDAQ:PSIX), recently sold a portion of his holdings in the company. According to a recent SEC filing, Winemaster sold 4,918 shares of common stock on October 17 at a price of $25.21 per share. This transaction totaled approximately $123,982.
Following the sale, Winemaster retains ownership of 3,100,308 shares directly. Additionally, an indirect holding of 681 shares is reported under his spouse's name. As a ten percent owner, Winemaster's transactions are closely watched by investors who track insider activity for potential insights into the company's prospects.
In other recent news, Power Solutions has been in the spotlight following its second-quarter results. Craig-Hallum has raised the price target for Power Solutions from $10.00 to $22.00, maintaining a Buy rating. This adjustment is primarily due to the company's strong Q2 performance, which, despite slightly missing revenue expectations, posted a record gross margin, leading to a considerable beat in adjusted EBITDA and EPS.
The company continues to forecast a year-over-year revenue growth of around 3%, even amid certain softness in its Industrial sectors like material handling and arbor care, and an anticipated drop in Transportation volumes. Power Solutions' commitment to profitability was further underscored in the second quarter, marked by an optimized cost structure, a shift away from unprofitable businesses, and additional debt repayment.
Significant achievements were also noted in the Power Systems division, particularly initial successes in data center applications. These recent developments demonstrate Power Solutions' dedication to growth and profitability. Craig-Hallum's analysis suggests a potential for a higher share price based on the current trading multiples.
InvestingPro Insights
While Gary S. Winemaster's recent sale of Power Solutions International, Inc. (NASDAQ:PSIX) shares has caught investor attention, it's important to consider this transaction in the context of the company's overall performance and valuation metrics.
According to InvestingPro data, PSIX has demonstrated remarkable market performance, with a staggering 983.62% price total return over the past six months and a 698.46% return over the last year. This exceptional growth is reflected in the stock's current price, which stands at 88.57% of its 52-week high.
Despite the impressive stock performance, PSIX is trading at a relatively modest P/E ratio of 12.73 based on the last twelve months' earnings as of Q2 2024. This valuation appears attractive when considering the company's growth prospects. InvestingPro Tips highlight that PSIX is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation.
Investors should note that PSIX operates with a moderate level of debt and has been profitable over the last twelve months. The company's financial health is further underscored by its strong EBITDA growth of 30.85% in the last twelve months ending Q2 2024.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for PSIX, providing deeper insights into the company's financial position and market outlook. These tips can be particularly valuable for investors looking to contextualize insider transactions like Winemaster's recent sale.
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