Arcosa Group President Trades $973K In Company Stock

Disclosed on May 16, Kerry Cole, Group President at Arcosa ACA, executed a substantial insider sell as per the latest SEC filing.

What Happened: Cole's recent move involves selling 10,978 shares of Arcosa. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $973,833.

The latest update on Friday morning shows Arcosa shares down by 0.26%, trading at $86.59.

All You Need to Know About Arcosa

Arcosa Inc is a manufacturer and producer of infrastructure-related products and services. It operates in three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Transportation Products segment manufactures and sells products for the inland waterway and rail transportation industries. The Engineered Structures segment manufactures and sells products for energy-related businesses, including structural wind towers, telecommunication structures, steel utility structures for electricity transmission and distribution, and storage and distribution containers.

Unraveling the Financial Story of Arcosa

Revenue Growth: Arcosa's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 8.99%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 18.64%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Arcosa's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.81.

Debt Management: Arcosa's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.26.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 29.73 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.79 is above industry norms, reflecting an elevated valuation for Arcosa's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 12.7, Arcosa presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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.

Unlocking the Meaning of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Arcosa's Insider Trades.

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