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Atkore Inc. (NYSE:ATKR), a manufacturer specializing in electrical supplies with annual revenue of $3.07 billion and strong liquidity metrics, has been served with a grand jury subpoena from the U.S. Department of Justice (DOJ) Antitrust Division, the company disclosed in a recent SEC filing. According to InvestingPro data, the company maintains a healthy current ratio of 3.03, indicating solid financial stability despite recent challenges. The subpoena, dated February 13, 2025, and issued by the U.S. District Court for the Northern District of California, demands the production of documents related to the pricing of Atkore's PVC pipe and conduit products.
The company, headquartered in Harvey, Illinois, confirmed its intention to fully comply with the legal request. Atkore's statement in the SEC filing did not provide details regarding the scope or the reasons behind the DOJ's investigation into its pricing practices.
The legal process comes at a time when antitrust scrutiny has been increasing across various industries, with government agencies closely monitoring competitive practices to ensure compliance with federal regulations. The timing is particularly significant as InvestingPro analysis shows the company is currently trading at attractive multiples, with a P/E ratio of 6.85 and an EV/EBITDA of 4.95, suggesting potential undervaluation despite the regulatory challenges. Subscribers to InvestingPro can access 14 additional key insights about Atkore's financial health and market position. While Atkore has not commented beyond its intention to cooperate, the subpoena suggests a focus on the company's pricing strategies within the market for PVC pipes and conduits.
Atkore, previously known as Atkore International Group Inc ., has been a publicly-traded entity on the New York Stock Exchange since its name change on February 5, 2016. The company's business address and contact information remain unchanged in the filing.
Investors and market observers will be closely watching the developments of this investigation, as compliance with antitrust laws is critical for maintaining fair competition and market integrity. The stock has experienced significant volatility, with the price currently at $72.51, down considerably from its 52-week high of $194.98. For comprehensive analysis of Atkore's market position and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro. The company's response to the DOJ's request will be a key factor in understanding the implications of the investigation on its operations and financial performance.
This news report is based on Atkore's latest 8-K filing with the Securities and Exchange Commission, which serves as the source of the information presented.
In other recent news, Atkore International Group Inc. has been the subject of several adjustments by financial analysts. Loop Capital Markets downgraded Atkore's stock rating from a "Buy" to a "Hold", lowering the price target from $115.00 to $65.00 due to concerns over the company's pricing power amidst increasing competition. At the same time, RBC Capital Markets revised Atkore's price target from $91.00 to $73.00, maintaining a Sector Perform rating, following the company's first-quarter fiscal year 2025 report.
KeyBanc Capital Markets also adjusted its outlook, reducing the price target to $80 from $105, while maintaining an Overweight rating. The firm's analyst expressed disappointment due to a "painful reset on pricing," but noted Atkore's proactive stance with their updated forecast for fiscal year 2025. The company's first-quarter earnings per share came in at $1.63, slightly above the analyst estimate of $1.59, but quarterly revenue fell short at $661.6 million, marking a 17.1% decrease in net sales compared to the same period last year.
Further developments include Atkore's recent annual meeting, where shareholders approved executive compensation and elected nine directors to serve until the 2026 Annual Meeting. The adoption of the Fourth Amended and Restated Certificate of Incorporation was also approved, and Deloitte & Touche LLP was ratified as Atkore's independent registered public accounting firm for the fiscal year ending September 30, 2025. These recent developments reflect ongoing adjustments in the company's financial outlook and strategic direction.
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