Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on December 5, James Donald Hoffman, Director at Reliance Steel & Aluminum (NYSE:RS), as per the latest SEC filing.
What Happened: After conducting a thorough analysis, Hoffman sold 10,183 shares of Reliance Steel & Aluminum. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $2,839,630.
Reliance Steel & Aluminum shares are trading down 0.0% at $269.67 at the time of this writing on Wednesday morning.
Get to Know Reliance Steel & Aluminum Better Reliance Steel & Aluminum Co is a metal service center in the United States, providing metal processing and inventory management services for carbon and stainless steel, aluminum, and alloys. Reliance predominantly supplies the nonresidential construction, automotive, aerospace, energy, transportation, and heavy equipment end markets. Its product offerings comprise alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products.
Key Indicators: Reliance Steel & Aluminum's Financial Health Decline in Revenue: Over the 3 months period, Reliance Steel & Aluminum faced challenges, resulting in a decline of approximately -14.7% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Exploring Profitability:
- Gross Margin: The company sets a benchmark with a high gross margin of 29.73%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): Reliance Steel & Aluminum's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 5.05.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: Reliance Steel & Aluminum's P/E ratio of 11.3 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.06 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 7.11 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Insider Transactions Are Important Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Exploring Key Transaction Codes In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Reliance Steel & Aluminum's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.