10% Owner Of Core & Main Makes $938.88M Sale

CDR Investment Associates X Ltd, 10% Owner at Core & Main CNM, disclosed an insider sell on January 25, according to a recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Ltd sold 22,907,815 shares of Core & Main. The total transaction amounted to $938,876,797.

Monitoring the market, Core & Main's shares down by 1.99% at $39.5 during Friday's morning.

Get to Know Core & Main Better

Core & Main Inc is a distributor of water, sewer, storm drain, and fire protection products in the United States. It combines local expertise with a national supply chain to provide contractors and municipalities solutions for new construction and aging infrastructure.

Key Indicators: Core & Main's Financial Health

Revenue Growth: Core & Main's remarkable performance in 3 months is evident. As of 31 October, 2023, the company achieved an impressive revenue growth rate of 0.5%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 27.04%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Core & Main's EPS reflects a decline, falling below the industry average with a current EPS of 0.65.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.92.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 19.1 is lower than the industry average, implying a discounted valuation for Core & Main's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.43, 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): With a below-average EV/EBITDA ratio of 10.09, Core & Main presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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 To Focus On

When analyzing transactions, investors tend to focus on those in the open market, 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 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 Core & Main's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.