Insider Transaction: Richard W Cardin Sells $934K Worth Of United States Lime Shares

A substantial insider sell was reported on August 26, by Richard W Cardin, Director at United States Lime USLM, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that Cardin executed a sale of 12,000 shares of United States Lime with a total value of $934,560.

The latest market snapshot at Tuesday morning reveals United States Lime shares down by 0.5%, trading at $81.0.

All You Need to Know About United States Lime

United States Lime & Minerals Inc is engaged in the business of manufacturing lime and limestone products including PLS, quicklime, hydrated lime, and lime slurry. It supplies its products predominantly to the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), oil and gas services, roof shingle manufacturers and agriculture (including poultry and cattle feed producers) industries. The company operates through its Lime and Limestone Operations segment.

Unraveling the Financial Story of United States Lime

Revenue Growth: United States Lime displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 3.46%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Navigating Financial Profits:

  • Gross Margin: The company sets a benchmark with a high gross margin of 45.49%, reflecting superior cost management and profitability compared to its peers.

  • Earnings per Share (EPS): With an EPS below industry norms, United States Lime exhibits below-average bottom-line performance with a current EPS of 0.91.

Debt Management: United States Lime's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.

Financial Valuation Breakdown:

  • Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 26.98 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

  • Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 8.05, United States Lime's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 17.19, the company's market valuation exceeds industry averages.

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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The Relevance of Insider Transactions

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.

The Insider's Guide to Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 United States Lime's Insider Trades.

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

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