Making a noteworthy insider sell on December 19, Andy L Nemeth, Chief Executive Officer at Patrick Industries (NASDAQ:PATK), is reported in the latest SEC filing.
What Happened: Nemeth's decision to sell 25,000 shares of Patrick Industries was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $2,875,000.
Patrick Industries's shares are actively trading at $110.96, experiencing a down of 0.0% during Friday's morning session.
<h3>Delving into Patrick Industries's Background</h3>
Patrick Industries Inc makes and sells building products and materials for recreational vehicles and manufactured housing. The company is organized into two segments based on product type: manufacturing and distribution. The manufacturing segment, which generates the majority of revenue, sells laminated and vinyl products that include furniture, shelving, cabinets, bath fixtures, and countertops. The distribution segment sells prefinished wall and ceiling panels, as well as electrical and plumbing products for the RV and manufactured housing industries. One of the firm's RV customers makes up a portion of revenue.
<h3>Breaking Down Patrick Industries's Financial Performance</h3>
Revenue Growth: Patrick Industries displayed positive results in 3 months. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 6.11%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Profitability Metrics: Unlocking Value
<ul>
<li>
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.65%, indicating potential difficulties in maintaining profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Patrick Industries's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.09.
</li>
</ul>
Debt Management: Patrick Industries's debt-to-equity ratio stands notably higher than the industry average, reaching 1.31. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Insights into Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 31.79 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
</li>
<li>
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.99, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an impressive EV/EBITDA ratio of 12.9, Patrick Industries demonstrates exemplary market valuation, surpassing industry averages.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
<h3>The Impact of Insider Transactions on Investments</h3>
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
Considering the legal perspective, an &#34;insider&#34; is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
<h3>Important Transaction Codes</h3>
When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Patrick Industries's Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

PATK

Andy L Nemeth, CEO of Patrick Industries, sold 25,000 shares worth $2.88 million, as reported in a Form 4 filing with the SEC. Patrick Industries, trading at $110.96, saw no change in stock price during the session. The company, involved in building products for RVs and manufactured housing, reported a 6.11% revenue growth but faces challenges with a low gross margin and high debt-to-equity ratio. The P/E ratio is above industry average, while the P/S ratio suggests potential value. Insider transactions like this are noteworthy but not sole investment determinants.

Chief Executive Officer Of Patrick Industries Makes $2.88M Sale