Owens-Corning Insider Trades SendAa Signal

Edward Lonergan, Director at Owens-Corning OC, disclosed an insider purchase on August 12, based on a new SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Lonergan increased their investment in Owens-Corning by purchasing 483 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $74,922.

Monitoring the market, Owens-Corning's shares up by 1.2% at $157.12 during Tuesday's morning.

All You Need to Know About Owens-Corning

Owens-Corning Inc is a manufacturer of glass fiber utilized in composites and building materials. It has an integrated business model with three reportable segments: Composites, Insulation, and Roofing. It generates maximum revenue from the Roofing segment. Its Roofing segment laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials, and oxidized asphalt. It meets the growing demand for longer-lasting, aesthetically attractive laminate products with modest capital investment. Geographically the company generates the majority of its revenue from the United States.

Unraveling the Financial Story of Owens-Corning

Revenue Growth: Over the 3 months period, Owens-Corning showcased positive performance, achieving a revenue growth rate of 8.82% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 31.09%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Owens-Corning's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 3.27.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.11, caution is advised due to increased financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.12, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.4 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Owens-Corning's EV/EBITDA ratio, lower than industry averages at 9.08, indicates attractively priced shares.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

A Closer Look at Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Owens-Corning's Insider Trades.

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