Ronald G Roth, Board Member at Clearfield (NASDAQ:CLFD), disclosed an insider purchase on December 15, based on a new SEC filing.
What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Roth purchased 10,000 shares of Clearfield, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $300,600.
At Tuesday morning, Clearfield shares are up by 2.64%, trading at $29.91.
<h3>Get to Know Clearfield Better</h3>
Clearfield Inc designs, manufactures, and distributes fiber protection, fiber management, and fiber delivery solutions to enable rapid and cost-effective fiber-fed deployment throughout the broadband service provider space prominently across North America. Its 'fiber to anywhere' platform serves the requirements of Community Broadband customers, Multiple System Operators, Large Regional Service Providers, National Carriers, and International customers (including Europe, Canada, Mexico, and Caribbean Markets). Its product offerings include Accessories, Cassettes, Cable &amp; Drop Assemblies, Frames &amp; Panels, Microducts, Optical Components, etc. The company derives the majority of its revenue from the United States.
<h3>Clearfield's Financial Performance</h3>
Positive Revenue Trend: Examining Clearfield's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 212.1% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Insights into Profitability:
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Gross Margin: With a high gross margin of 73.52%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): Clearfield's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.65.
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Debt Management: With a below-average debt-to-equity ratio of 0.03, Clearfield adopts a prudent financial strategy, indicating a balanced approach to debt management.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 64.76 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The P/S ratio of 2.72 is lower than the industry average, implying a discounted valuation for Clearfield's stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Clearfield's EV/EBITDA ratio at 20.7 suggests potential undervaluation, falling below industry averages.
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Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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<h3>Exploring the Significance of Insider Trading</h3>
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Within the legal framework, an &#34;insider&#34; is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>Cracking Transaction Codes</h3>
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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 Clearfield's Insider Trades.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

CLFD

Ronald G Roth, a Board Member at Clearfield (NASDAQ:CLFD), purchased 10,000 shares of Clearfield stock worth $300,600, indicating confidence in the company's growth potential. This insider purchase was disclosed in a Form 4 filing with the SEC. Following the news, Clearfield shares rose by 2.64%, trading at $29.91. Clearfield Inc designs and distributes fiber solutions, with significant revenue growth and strong financial performance, despite challenges in EPS. The company's stock appears undervalued based on various financial ratios.

Bullish Move: Ronald G Roth Shows Confidence, Acquires $300K In Clearfield Stock