Platform Specialty Products Corporation (PAH): The Insiders Are Selling, Are You?

With 1.52 sell/buy ratio, Platform Specialty Products Corporation (NYSE:PAH) experienced more insider selling than insider buying over the last three months. Could this be a sign for outside investors to start selling as well? PAH recorded 3 sales on the open market in the last three months. They sold nearly 2,632,079 shares while purchases amounted to 1,736,500 shares that period. Looking even further back to 12 months, corporate insiders offloaded 12,610,355 shares when buyers snapped up 12,490,498 shares. The 12-month’s totals signify about a 1.01-to-1 sell/buy ratio.

Franklin Martin E parted with a total of 2.42 million shares of Platform Specialty Products Corporation (PAH) at average share price of $9.91. This insider trade in the company took place on 12/21/2018. The total for the sales was set at $23.97 million. After this transaction, the Director, 10% Owner account balance stood at 15.55 million shares. The stock grew 10.19 percent since that insider sale. On 12/20/2018, Capps John Edward, EVP, General Counsel & Sec., purchased 50 thousand shares at a price per share of $10. This added 500 thousand shares to the insider’s fortune and the stock saw a 9.2 percent rally in value since the news became public. This transaction left 254.33 thousand shares in the EVP, General Counsel & Sec. account.

On 12/18/2018, EVP, General Counsel & Sec. Capps John Edward performed a purchase transaction worth $533.5 thousand. This purchase at $10.67 each has added 50 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 2.34 percent increase since the transaction was reported. The insider now is left with 204.33 thousand shares remaining in the account. Franklin Martin E, who performs the Director, 10% Owner job, bought 200 thousand shares for $2.19 million. The acquisition occurred on 12/14/2018 was priced at $10.96 per share. The share price plunged -0.36 percent since the reporting date. Franklin Martin E now left with a stake of 15.55 million PAH stock worth $169.81 million after the insider buying.

The 12-month median price target for Platform Specialty Products Corporation (PAH) assigned by the analysts stands at $13.5, which represents a return potential of 23.63 percent when compared to the closing price of the stock of $10.92 on Thursday, January 24. The lowest price target for the stock is $12 — slightly more than 9.89 percent from PAH’s current share price. The stock will probably climb 27.2 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $16price as 12-month high target. This represents a whopping 46.52 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 48.77 on daily chart, which may remain a cause for concern. If the price breaks below $10.68 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.15 mark may result into a pull-back move towards $11.37 level. The stock is currently hovering around the first support level of $10.8. Below this, the next support is placed in the zone of $10.68. Till the time, the PAH stock trades above this level, bulls have nothing to fear.

Shares of Platform Specialty Products Corporation (PAH) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry PAH operates in has an average P/E of 24.38. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 1.21 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.35. 42.1 percent is the gross profit margin for Platform Specialty Products Corporation and operating margin sits at 11 percent. Along with this, the net profit margin is -12.6 percent.

On 24th of January, Platform Specialty Products Corporation (NYSE:PAH) shares ended higher after a volatile session. The shares accumulated 0.03 points or 0.28 percent at $10.92 with a heavy trade volume of 3.822 million shares. After opening the session at $11.04, the shares went as high as $11.255 and as low as $10.91, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.1 billion and now has 283.82 million shares outstanding. Platform Specialty Products Corporation (PAH) stock has gained 11.66 percent of market value in 21 trading days.

PAH stock has a trailing 3-year beta of 2.69, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.88 a share in the trailing twelve months. The stock’s value has surged 5.71 percent year to date (YTD) against a decline of -5.04 percent in 12 month’s time. The company’s shares still trade -19.35 percent away from its 1-year high of $13.54 and 20.13 percent up from 52-week low of $9.09. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.