Ascent Industries VP buys $18,840 in company stock

In a recent transaction, Anthony X. Pan, the Vice President of Sales & Business Development at Ascent Industries Co. (NYSE:ACNT), a company specializing in steel pipe and tubes, has increased his stake in the company. On September 20, 2024, Pan purchased 2,000 shares of Ascent Industries' common stock at a weighted average price of $9.42, amounting to a total investment of $18,840.

The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission. According to the filing, the shares were bought in multiple transactions at prices ranging from $9.41 to $9.43 per share. Following the purchase, Pan's direct holdings in Ascent Industries Co. have increased to a total of 10,570 shares.

It is also noted that Pan has previously reported indirect holdings of 1,293 shares by his spouse and 550 shares by his mother. However, Pan disclaims beneficial ownership of these indirectly held securities, and this report should not be taken as an admission of beneficial ownership for the purposes of Section 16 or any other purpose.

Ascent Industries Co. has been listed under its current name since a name change from Synalloy Corp in 1992, with a further historical name change from Blackman Uhler Industries Inc dating back to 1971. The company is incorporated in Delaware and has its fiscal year-end on December 31.

Investors often monitor insider buying and selling as it can provide insights into a company's internal perspective on the business's performance and outlook. However, it's important to consider that insider transactions are not necessarily indicative of future stock performance and should be evaluated as part of a broader investment strategy.



In other recent news, Ascent reported encouraging Q2 2024 financial results, including the best consolidated adjusted EBITDA since Q4 2022. Despite a slight decrease in net sales to $50.2 million due to lower pricing, the company saw a significant surge in volume and an increase in gross profit in its Tubular Products and Specialty Chemicals segments. The gross profit improved to $5.9 million with a considerable increase in gross margin to 11.7%.

Ascent has been active in implementing cost-cutting measures and operational efficiencies in response to a challenging market with soft demand. The company has no outstanding debt under its revolving credit facility and has access to $62.7 million for growth. In addition, Ascent repurchased 15,233 shares for approximately $156,000.

Recent developments include the completion of a $2.8 million asset sale for Munhall. Ascent is strategically planning for future growth through capital allocation and share repurchases. The company anticipates a gradual improvement in demand throughout the year, providing a foundation for more robust growth opportunities in 2025 and beyond.
InvestingPro Insights


As Anthony X. Pan increases his stake in Ascent Industries Co. (NYSE:ACNT), investors may find the following insights from InvestingPro particularly relevant. The company's management has been actively repurchasing shares, signaling confidence in the firm's future prospects. This aligns with the recent insider buying activity and may be of interest to shareholders keeping an eye on management's actions.

Moreover, despite facing challenges with weak gross profit margins, currently at 5.06%, Ascent Industries is anticipated to see net income growth this year according to analysts. This expected turnaround in profitability could be a driving factor behind the recent insider transactions and is a key point for investors to consider.

Looking at the company's financial health, Ascent Industries' liquid assets surpass its short-term obligations, providing a cushion for operational needs or unforeseen expenses. However, it's important to note that the company has not been profitable over the last twelve months, with a negative P/E ratio of -7.43, reflecting its current earnings challenges.

In terms of stock performance, Ascent Industries has seen a 1-week price total return of 6.52%, which may catch the attention of momentum investors. The fair value assessments from analysts and InvestingPro differ significantly, with analysts setting a target of $18, while InvestingPro's fair value estimate stands at $8.07, suggesting varying perspectives on the company's valuation.

For those interested in further insights, InvestingPro offers additional tips for Ascent Industries Co., which can be accessed through the dedicated InvestingPro platform.

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Source: Investing.com