Insider Unloading: Frank C Sullivan Sells $19.23M Worth Of RPM Intl Shares

Revealing a significant insider sell on August 19, Frank C Sullivan, Chairman and CEO at RPM Intl RPM, as per the latest SEC filing.

What Happened: Sullivan's decision to sell 164,509 shares of RPM Intl was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $19,227,197.

As of Tuesday morning, RPM Intl shares are down by 0.71%, currently priced at $115.44.

About RPM Intl

RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributors, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a line of products ranging from niche applications of the other groups to marine finishes, to edible food colorings. The majority of revenue comes from North America.

RPM Intl's Economic Impact: An Analysis

Negative Revenue Trend: Examining RPM Intl's financials over 3 months reveals challenges. As of 31 May, 2024, the company experienced a decline of approximately -0.4% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company sets a benchmark with a high gross margin of 41.36%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): RPM Intl's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.41.

Debt Management: RPM Intl's debt-to-equity ratio surpasses industry norms, standing at 0.96. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 25.5 is lower than the industry average, implying a discounted valuation for RPM Intl's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.03, 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): A high EV/EBITDA ratio of 15.92 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Relevance 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.

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.

Understanding Crucial 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 RPM Intl's Insider Trades.

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