By Gary S. Winemaster, a significant shareholder of Power Solutions International, Inc. (NASDAQ:PSIX), has sold a substantial amount of company stock, transactions that were disclosed in a recent filing with the Securities and Exchange Commission. Over a series of three days, Winemaster disposed of a total of 58,890 shares, resulting in proceeds exceeding $1.1 million.
The sales occurred on September 19, 20, and 23, with prices per share ranging from $17.5706 to $19.4801. On the first day, Winemaster sold 6,681 shares at an average price of $17.5706, with individual transactions ranging from $17.6547 to $17.55. The following day, an additional 12,209 shares were sold at an average price of $17.8793, within a price range of $17.75 to $17.95. The final sale, which was the largest, involved 40,000 shares at an average price of $19.4801, with prices spanning from $19.35 to $19.65 per share.
Following these transactions, Winemaster’s direct holdings in Power Solutions International have decreased to 3,147,570 shares. Additionally, an indirect holding of 681 shares owned by Winemaster’s spouse was reported.
Investors often monitor such insider transactions as they can provide insights into an insider’s view of the company’s value. The SEC filing ensures transparency, allowing investors to see the details of these stock sales.
Power Solutions International, based in Wood Dale, Illinois, specializes in engines and turbines, a sector that is closely watched by investors for signs of growth and innovation. As with any insider transactions, market participants will be keeping a close eye on the company’s performance and strategic direction following these significant sales by a key shareholder.
In other recent news, Power Solutions has been making notable strides in the market. The company’s second-quarter performance, despite slightly missing revenue expectations, yielded a record gross margin, resulting in a significant beat in adjusted EBITDA and EPS. This led Craig-Hallum to raise their price target for the company from $10.00 to $22.00, while maintaining a Buy rating.
Power Solutions continues to project a year-over-year revenue growth of approximately 3%, even amid softness in its Industrial sectors and an expected decline in Transportation volumes. The company’s dedication to profitability was underscored in the second quarter, marked by an optimized cost structure, a shift away from unprofitable businesses, and further debt repayment.
Notably, the Power Systems division made significant strides, particularly due to initial successes in data center applications. The company’s shares are currently trading at approximately 4.5 times EV/EBITDA and 4.5 times P/E on FY25 projections. In addition, there is an ongoing focus on potentially uplisting the shares to a larger exchange. These are among the recent developments in the company’s business operations.
InvestingPro Insights
As investors digest the news of Gary S. Winemaster’s recent sale of shares in Power Solutions International, Inc. (NASDAQ:PSIX), it is worth considering some key financial metrics and insights provided by InvestingPro. The company’s market capitalization stands at $456.37 million, and it is trading at a P/E ratio of 10.24, which suggests that the stock could be undervalued relative to its near-term earnings growth potential.
According to InvestingPro, Power Solutions International is expected to see net income growth this year, which may be a signal for potential investors about the company’s profitability trajectory. Additionally, the stock has experienced a significant return over the last week, with a 15.5% price total return, reflecting a strong performance in the short term. This, coupled with a robust 504.08% return over the last year, indicates a positive momentum for the company’s share price.
InvestingPro Tips for Power Solutions International highlight the company’s high shareholder yield and the prediction by analysts that the company will be profitable this year. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/PSIX. These tips can offer further insights into the company’s financial health and investment potential.
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