ESCO Technologies CEO Victor Richey: CEO and President of ESCO Technologies Inc. (NYSE:ESE), Victor Richey, purchased 39,704 shares of common stock earlier this week, at $33.12 per share. This latest acquisition brings Richey’s holdings to 414,127 shares or appoximately $13,475,692. Esco Technologies is trading at very low values, rather close to its 52-week low of $30.25. However, while trading at 36.5 times its trailing earnings, the stock continues to demonstrate a 17.7% price premium relative to the industry average.
Hedge funds have been fleeing from Esco Technologies, yet Levin Capital Strategies, Bryn Mawr Capital and Citadel Investment Group have maintained their positions in the firm. John A. Levin of Levin Capital is the only hedge fund manager that seems truly bullish about this company, though. As the largest shareholder of the funds we track, Levin currently holds $7.3 million in Esco.
The stock was downgraded by Needham in August from Buy to Hold, and its dividend yield of 0.97% is not worth getting excited about. Last quarter, earnings per share decreased 35.29% and revenue was only $117.9 million, 30.42% lower than the year-earlier quarter.
Despite not reaching expectations, Esco has a strong financial position and according to a press release, the board of directors believes the firm’s shares are trading at a price that, “does not fully reflect the value of its underlying assets.” In order to change this, the company announced it would sell Aclara Technologies as part of a divestiture process. As Richey stated back in August, “This process will help ensure ESCO achieves its full earnings potential while creating additional shareholder value.”
Disclosure: Pablo Erbar holds no position in any stocks mentioned