Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider sell was reported on November 30, by David Clement, Senior Vice President at Vulcan Materials (NYSE:VMC), based on the recent SEC filing.
What Happened: Clement's decision to sell 764 shares of Vulcan Materials was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $161,968.
Vulcan Materials shares are trading down 0.0% at $213.56 at the time of this writing on Friday morning.
All You Need to Know About Vulcan Materials Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2022, Vulcan sold 263.4 million tons of aggregates, 12.2 million tons of asphalt mix, and 10.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.
Vulcan Materials: Financial Performance Dissected Positive Revenue Trend: Examining Vulcan Materials's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.67% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Exploring Profitability:
- Gross Margin: The company faces challenges with a low gross margin of 27.04%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Vulcan Materials's EPS reflects a decline, falling below the industry average with a current EPS of 2.08.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 34.17 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.72 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 17.36, Vulcan Materials demonstrates exemplary market valuation, surpassing industry averages.
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Unmasking the Significance of Insider Transactions Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
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.
Transaction Codes Worth Your Attention 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 Vulcan Materials's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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