Axalta Coating Sys SVP Sold $335K In Company Stock

Revealing a significant insider sell on December 5, Hadi Awada, SVP at Axalta Coating Sys AXTA, as per the latest SEC filing.

What Happened: Awada's decision to sell 10,500 shares of Axalta Coating Sys was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $335,895.

Tracking the Wednesday's morning session, Axalta Coating Sys shares are trading at $32.13, showing a down of 0.0%.

Get to Know Axalta Coating Sys Better

Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific and Latin America.

Breaking Down Axalta Coating Sys's Financial Performance

Revenue Growth: Over the 3 months period, Axalta Coating Sys showcased positive performance, achieving a revenue growth rate of 5.68% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Evaluating Earnings Performance:

• Gross Margin: The company maintains a high gross margin of 32.35%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Axalta Coating Sys's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.33.

Debt Management: Axalta Coating Sys's debt-to-equity ratio stands notably higher than the industry average, reaching 2.21. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Axalta Coating Sys's P/E ratio of 30.03 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.39 is lower than the industry average, implying a discounted valuation for Axalta Coating Sys's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Axalta Coating Sys's EV/EBITDA ratio, lower than industry averages at 12.71, indicates attractively priced shares.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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

Navigating the Impact of Insider Transactions on Investments

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Axalta Coating Sys's Insider Trades.

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