SVP Of Vulcan Materials Makes $832K Sale

Making a noteworthy insider sell on November 12, Denson Franklin III, SVP at Vulcan Materials VMC, is reported in the latest SEC filing.

What Happened: III's decision to sell 2,865 shares of Vulcan Materials was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $832,742.

The latest update on Wednesday morning shows Vulcan Materials shares up by 0.63%, trading at $290.2.

Delving into Vulcan Materials's Background

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2023, Vulcan sold 234.3 million tons of aggregates, 13.4 million tons of asphalt mix, and 7.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.

Financial Milestones: Vulcan Materials's Journey

Negative Revenue Trend: Examining Vulcan Materials's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -8.32% in revenue growth, reflecting a decrease in 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.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 28.21%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Vulcan Materials's EPS reflects a decline, falling below the industry average with a current EPS of 1.57.

Debt Management: Vulcan Materials's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.49.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 45.06 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: The current P/S ratio of 5.19 is above industry norms, reflecting an elevated valuation for Vulcan Materials's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 21.31, Vulcan Materials demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Uncovering the Importance of Insider Activity

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.

Cracking Transaction Codes

When it comes to 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 indicates 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 Vulcan Materials's Insider Trades.

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