Insider Unloading: Jesse E Gary Sells $1.48M Worth Of Century Aluminum Shares

Disclosed on December 30, Jesse E Gary, President and CEO at Century Aluminum CENX, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Gary sold 79,243 shares of Century Aluminum. The total transaction amounted to $1,478,739.

In the Tuesday's morning session, Century Aluminum's shares are currently trading at $18.32, experiencing a up of 0.49%.

Get to Know Century Aluminum Better

Century Aluminum Co produces primary aluminum standard grade and value-added products. The firm operates smelter facilities in the United States and Iceland. The majority of revenue is generated from Glencore, which agreed to purchase nearly all of Century Aluminum's North American production. Century purchases nearly all of its alumina from Glencore. The company produces high purity aluminum, standard grade aluminum sow and tee bars, and value-added billet and foundry products. Century also owns a carbon anode production facility in the Netherlands.

Unraveling the Financial Story of Century Aluminum

Decline in Revenue: Over the 3 months period, Century Aluminum faced challenges, resulting in a decline of approximately -1.12% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 15.17%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Century Aluminum's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.48.

Debt Management: Century Aluminum's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.74, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 5.79 is lower than the industry average, implying a discounted valuation for Century Aluminum's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.84 is lower than the industry average, implying a discounted valuation for Century Aluminum's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 4.87 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Illuminating the Importance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

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

Essential Transaction Codes Unveiled

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Century Aluminum's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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