Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on April 29, Andrew Jeffrey Martin, EVP at Mueller Industries (NYSE:MLI), as per the latest SEC filing.
What Happened: Martin's recent move involves selling 52,436 shares of Mueller Industries. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $3,002,050.
The latest market snapshot at Tuesday morning reveals Mueller Industries shares down by 0.0%, trading at $58.07.
Unveiling the Story Behind Mueller Industries Mueller Industries Inc makes copper, brass, aluminum, and plastic products. The company reports three business segments: piping systems, industrial metals, and climate. Piping systems, earning majority of the company's revenue, produces tubes, fittings, rods, valves, and other products and operates various firms world-wide. The industrial metals segment manufactures impacts and micro-gauge, brass rod and copper bar products, and brass value-added products. The climate segment produces items used to create temperature-control goods, including valves, twisted tubes, coaxial heat exchangers, and others. Numerous systems use the aforementioned products, including HVAC, water distribution, refrigeration, and automotive.
Mueller Industries: Financial Performance Dissected Decline in Revenue: Over the 3 months period, Mueller Industries faced challenges, resulting in a decline of approximately -12.51% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Key Insights into Profitability Metrics:
- Gross Margin: The company shows a low gross margin of 28.36%, suggesting potential challenges in cost control and profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, Mueller Industries exhibits below-average bottom-line performance with a current EPS of 1.24.
Valuation Analysis:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 11.68, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.01, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 6.21 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
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Why Insider Activity Matters in Finance Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
The Insider's Guide to Important Transaction Codes When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Mueller Industries's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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