TULSA, OK—Gordon Douglas Wichman, Vice President of AAON , Inc. (NASDAQ:AAON), recently sold 6,000 shares of the company's common stock. The transaction, executed on November 13, 2024, was completed at a weighted average price of $135.15 per share, amounting to a total sale value of approximately $810,900.
In a related transaction on the same day, Wichman acquired 6,000 shares through the exercise of stock options at a price of $21.58 per share. This acquisition, valued at $129,479, reflects the conversion of stock options into common stock.
Following these transactions, Wichman holds 7,947 shares of AAON stock directly. Additionally, he retains indirect ownership of 3,744 shares through a 401(k) plan.
AAON, a leader in air conditioning and heating equipment, continues to be a significant player in the industrial sector, with Wichman's transactions drawing attention from investors monitoring insider trading activities.
In other recent news, AAON Inc. reported an expansion and growth in its Q3 2024 financial results. The company's revenue increased by 4.9% to $327.3 million, while diluted earnings per share rose by 8.6% to $0.63. Despite a contraction in gross margin to 34.9%, the company achieved a strong 25.3% adjusted EBITDA margin. AAON experienced a significant surge in demand, particularly for data center equipment, leading to a 27% year-to-date increase in bookings and a 32% increase in total backlog compared to the previous year.
In addition to its financial performance, AAON has partnered with industry leaders to take on the U.S. Department of Energy's Better Buildings Commercial Building Heat Pump Technology Challenge. The company is working with long-time partner Copeland and several universities to develop advanced HVAC technologies in line with new DOE regulations.
While the company expects a short-term softening in demand, it is optimistic about recovery and growth into 2025. AAON is currently expanding its production capacity and restructuring to manage operational risks, focusing on long-term growth and efficiency. These recent developments reflect a company that is adeptly navigating industry shifts and capitalizing on emerging market segments.
InvestingPro Insights
AAON's recent stock performance and financial metrics provide additional context to Gordon Douglas Wichman's insider transactions. According to InvestingPro data, AAON has demonstrated impressive market performance, with a 109.77% price total return over the past year and a substantial 76.01% return in the last six months. This strong performance aligns with the timing of Wichman's decision to exercise options and sell shares.
The company's financial health appears robust, with a market capitalization of $10.75 billion and a revenue of $1.21 billion in the last twelve months as of Q3 2024. AAON's profitability is noteworthy, with an operating income margin of 20.24% and a gross profit margin of 35.65% for the same period.
InvestingPro Tips highlight that AAON has maintained dividend payments for 19 consecutive years, indicating a commitment to shareholder returns. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong financial position.
However, investors should note that AAON is trading at a high P/E ratio of 55.81, which may indicate that the stock is priced at a premium relative to earnings. This valuation metric could be a factor for insiders considering the timing of stock transactions.
For those interested in a deeper analysis, InvestingPro offers 18 additional tips for AAON, providing a more comprehensive view of the company's financial landscape and market position.
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