Brian S. Olschan, the President and COO of ACME United Corp (NYSEMKT:ACU), engaged in recent stock transactions, according to a new SEC filing. On May 14, Olschan sold 7,800 shares of the company's common stock, totaling approximately $314,574, with the sale prices ranging from $40.25 to $40.50 per share.
In addition to the sale, Olschan also exercised options to acquire the same number of shares, 7,800, at a price of $21.49 per share, amounting to a total transaction value of $167,622.
The transactions were reported in a Form 4 filing with the Securities and Exchange Commission, which provides details of insider trading activities. Olschan's sales and option exercises are part of the normal course of actions executives take in managing their stock positions in the companies they lead.
Following these transactions, Olschan's direct ownership in ACME United Corp stands at 41,103 shares of common stock. Meanwhile, the derivative securities post-transaction amount indicates that Olschan holds a significant number of employee stock options, with 300,965 shares remaining.
Investors often monitor insider sales and purchases as they can provide insights into an executive's perspective on the company's current valuation and future prospects. However, it's important to note that such transactions do not necessarily indicate a change in company fundamentals and can be influenced by various personal financial considerations.
ACME United Corp, with a standard industrial classification in cutlery, handtools, and general hardware, has its headquarters in Shelton, Connecticut. The company has a history dating back to its former name, ACME Shear Co, which was changed in 1971.
InvestingPro Insights
The recent insider trading activity by ACME United Corp's (NYSEMKT:ACU) President and COO, Brian S. Olschan, has caught the attention of shareholders and potential investors. To provide further context to these transactions, InvestingPro has highlighted several key metrics and tips that could be valuable when assessing the company's financial health and stock performance.
Firstly, ACME United Corp is trading at a low earnings multiple, with an adjusted P/E ratio of 21.8 as of the last twelve months ending Q1 2024. This could suggest that the stock is undervalued relative to its earnings capacity. Additionally, the company has a PEG ratio of 4.13, which may indicate a high price relative to near-term earnings growth prospects.
Another notable metric is the company's Price / Book value of 1.61, which can offer insights into how the market values the company’s net assets. Furthermore, ACME United Corp has demonstrated commitment to shareholder returns, having raised its dividend for 3 consecutive years and maintaining dividend payments for 21 consecutive years. The dividend yield stands at 1.52% as of the latest data.
InvestingPro Tips also highlight that ACU has experienced a strong return over the last year, with a 59.48% price total return, despite a recent decline in the short term, with a three-month price total return of -19.28%. Investors considering ACU might find these insights particularly relevant when juxtaposing the insider trading activity with broader company performance.
To explore more about ACME United Corp's financials and stock performance, readers are encouraged to access additional InvestingPro Tips at https://www.investing.com/pro/ACU. There are currently 11 tips available, offering comprehensive analysis for those interested in a deeper dive. Additionally, use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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