Core & Main 10% Owner Sold $864.40M In Company Stock

On January 11, a recent SEC filing unveiled that CDR Investment Associates X Ltd, 10% Owner at Core & Main CNM made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Ltd sold 22,675,728 shares of Core & Main. The total transaction value is $864,398,751.

Tracking the Friday's morning session, Core & Main shares are trading at $40.92, showing a down of 0.0%.

About Core & Main

Core & Main Inc is a distributor of water, sewer, storm drain, and fire protection products in the United States. It combines local expertise with a national supply chain to provide contractors and municipalities solutions for new construction and aging infrastructure.

Breaking Down Core & Main's Financial Performance

Revenue Growth: Core & Main's remarkable performance in 3 months is evident. As of 31 October, 2023, the company achieved an impressive revenue growth rate of 0.5%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 27.04%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Core & Main's EPS is below the industry average. The company faced challenges with a current EPS of 0.65. This suggests a potential decline in earnings.

Debt Management: Core & Main's debt-to-equity ratio is below the industry average. With a ratio of 0.92, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 19.39 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.45, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 10.0, Core & Main presents an attractive value opportunity.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

Understanding Crucial 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 Core & Main's Insider Trades.

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