The recent insider selling of AZEK shares, without any corresponding purchases, could be a potential red flag for investors. Despite the company being profitable and growing, the history of share sales and lack of recent purchases may cause some hesitation.
Investors may be overpaying for AZEK's stock given its high P/S ratio and average growth expectations. The company's lackluster revenue figures also raise doubts about the sustainability of its elevated P/S ratio in the long term.
AZEK's ROCE upward trend and capital employed, albeit not high, hint at potential growth. Recent stock drop may be an investment chance, yet deeper company insight is advised.
CEO's stock sale, even below current price, questions insider views on recent valuation. AZEK's history of share sales, despite high insider ownership, might worry investors.
Though AZEK's earnings per share fell over the last year, the strong free cash flow and positive accrual ratio indicates a strong earnings potential. The company's future profitability is also receiving attention from analysts.
Recent insider selling of AZEK shares, including sales by the CEO, without insider purchases prompts analyst caution. Moderate insider ownership situates some alignment between management and small shareholders. Further scrutiny urged due to warning signs.
AZEK is seen as undervalued at its current trading price, suggesting a buying opportunity. The company's future outlook is positive with anticipated higher cash flow.
The AZEK Stock Forum
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