Vulcan Materials Recent Insider Activity

Disclosed on November 30, David Clement, Senior Vice President at Vulcan Materials VMC, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Clement executed a sale of 764 shares of Vulcan Materials with a total value of $161,968.

Tracking the Friday's morning session, Vulcan Materials shares are trading at $213.56, showing a down of 0.0%.

Discovering Vulcan Materials: A Closer Look

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 2022, Vulcan sold 263.4 million tons of aggregates, 12.2 million tons of asphalt mix, and 10.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.

Understanding the Numbers: Vulcan Materials's Finances

Revenue Growth: Vulcan Materials displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 4.67%. This indicates a notable 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.

Insights into Profitability:

• Gross Margin: With a low gross margin of 27.04%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Vulcan Materials's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 2.08.

Debt Management: With a high debt-to-equity ratio of 0.59, Vulcan Materials faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The current P/E ratio of 34.17 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.72, Vulcan Materials'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): A high EV/EBITDA ratio of 17.36 reflects market recognition of Vulcan Materials's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Why Insider Activity Matters in Finance

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

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Exploring Key Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Vulcan Materials's Insider Trades.

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