SVP Of Eagle Materials Sold $719K In Stock

Disclosed on November 7, William R Devlin, SVP at Eagle Materials EXP, executed a substantial insider sell as per the latest SEC filing.

What Happened: Devlin opted to sell 2,304 shares of Eagle Materials, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $719,885.

During Friday's morning session, Eagle Materials shares up by 0.87%, currently priced at $314.25.

Delving into Eagle Materials's Background

Eagle Materials Inc produces and sells construction products and building materials. Construction products include cement, slag, concrete, and aggregates and building materials include cement and gypsum wallboard, and are sold to the construction and building industries. The firm organizes itself into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments.

Key Indicators: Eagle Materials's Financial Health

Revenue Growth: Eagle Materials's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 0.22%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 32.69%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Eagle Materials exhibits below-average bottom-line performance with a current EPS of 4.29.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.77, caution is advised due to increased financial risk.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.03 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.71 is above industry norms, reflecting an elevated valuation for Eagle Materials's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 13.96, Eagle Materials presents an attractive value opportunity.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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 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 Eagle Materials's Insider Trades.

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