Insider Selling: Bruce R. Hazelgrove III) Unloads $691K Of NewMarket Stock

Bruce R. Hazelgrove III), EVP & CAO at NewMarket NEU, reported an insider sell on August 13, according to a new SEC filing.

What Happened: III) opted to sell 1,270 shares of NewMarket, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $691,271.

Monitoring the market, NewMarket's shares down by 0.0% at $547.92 during Wednesday's morning.

Delving into NewMarket's Background

NewMarket Corp is a holding company that, through its subsidiaries, manufactures and sells petroleum additives. Petroleum additives are used in lubricating oils and fuels to enhance their performance in machinery, vehicles, and other equipment. It comprises two broad product applications. Lubricant additives are formulated chemical solutions that, when blended with base fluids, improve the efficiency, durability, performance, and functionality of mineral oils, synthetic oils, and biodegradable fluids. Fuel additives are chemical components that help oil refiners meet fuel specifications or formulated packages that improve the performance of gasoline, diesel, biofuels, and other fuels.

Financial Milestones: NewMarket's Journey

Revenue Growth: NewMarket displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 3.66%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 30.76%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): NewMarket's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 11.63.

Debt Management: NewMarket's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.01, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: NewMarket's P/E ratio of 12.78 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.93 is lower than the industry average, implying a discounted valuation for NewMarket's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): NewMarket's EV/EBITDA ratio at 9.72 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

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 the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 NewMarket's Insider Trades.

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