Notable Insider Move: Mehul Patel Takes Part In Options Exercise At Carlisle Companies, Resulting In $0

A substantial insider activity was disclosed on January 29, as Patel, VP at Carlisle Companies CSL, reported the exercise of a large sell of company stock options.

What Happened: A notable Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission revealed that Patel, VP at Carlisle Companies, exercised stock options for 0 shares of CSL, resulting in a transaction value of $0.

As of Thursday morning, Carlisle Companies shares are down by 0.0%, with a current price of $389.38. This implies that Patel's 0 shares have a value of $0.

All You Need to Know About Carlisle Companies

Carlisle Companies Inc is a holding company. The company manufactures and sells single-ply roofing products and warranted systems and accessories for the commercial building industry. The company is organized into two segments including Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company's product portfolio includes moisture protection products, protective roofing underlayments, integrated air and vapor barriers, spray polyurethane foam and coating systems, and others. The majority of the company's revenue comes from the Carlisle Construction Materials segment, and more than half of the total revenue is earned in the United States.

A Deep Dive into Carlisle Companies's Financials

Revenue Growth: Carlisle Companies's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 5.86%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 38.57%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Carlisle Companies's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 5.31.

Debt Management: With a below-average debt-to-equity ratio of 0.83, Carlisle Companies adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 20.89, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.72 is above industry norms, reflecting an elevated valuation for Carlisle Companies's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Carlisle Companies's EV/EBITDA ratio at 13.24 suggests potential undervaluation, falling below industry averages.

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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Why Insider Transactions Are Key in Investment Decisions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

The Insider's Guide to Important Transaction Codes

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 Carlisle Companies's Insider Trades.

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