Chief Legal Officer Of Valvoline Sold $224K In Stock

Marie Julie ODaniel, Chief Legal Officer at Valvoline VVV, disclosed an insider sell on February 27, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that ODaniel executed a sale of 6,000 shares of Valvoline with a total value of $224,430.

Tracking the Thursday's morning session, Valvoline shares are trading at $36.98, showing a down of 0.0%.

Get to Know Valvoline Better

Valvoline Inc produces, markets, and sells automotive maintenance products, particularly lubricants, to retail outlets installers, and customers. The company offers various products such as engine oil, heavy-duty engine oil, motorcycle oil, grease and brake fluid, and others. Geographically, the majority of the revenue is generated from the United States of America.

Key Indicators: Valvoline's Financial Health

Positive Revenue Trend: Examining Valvoline's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.95% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: The company maintains a high gross margin of 36.91%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Valvoline's EPS is below the industry average. The company faced challenges with a current EPS of 0.71. This suggests a potential decline in earnings.

Debt Management: Valvoline's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.68, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 17.61, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.9, Valvoline'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 a below-average EV/EBITDA ratio of 10.6, Valvoline presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Delving Into the Significance of 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.

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.

Transaction Codes Worth Your Attention

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Valvoline's Insider Trades.

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