Insider Transaction: Craig D Apolinsky Sells $354K Worth Of GMS Shares

Making a noteworthy insider sell on January 10, Craig D Apolinsky, SVP at GMS GMS, is reported in the latest SEC filing.

What Happened: After conducting a thorough analysis, Apolinsky sold 4,455 shares of GMS. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $354,350.

The latest market snapshot at Thursday morning reveals GMS shares down by 0.0%, trading at $80.54.

Get to Know GMS Better

GMS Inc is a distributor of specialty building products including wallboard, suspended ceilings systems, or ceilings, steel framing, and other complementary building products. The company serves its products to commercial new construction, commercial repair and remodel, residential new construction, and residential repair and remodel (R&R). Its geographical segment is Central, Midwest, Northeast, Southern, Southeast, Western, and Canada. The company generates maximum revenue from Wallboard products and geographically from the United States.

Financial Milestones: GMS's Journey

Revenue Growth: GMS's revenue growth over a period of 3 months has faced challenges. As of 31 October, 2023, the company experienced a revenue decline of approximately -0.7%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Insights into Profitability:

• Gross Margin: With a low gross margin of 32.28%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): GMS's EPS reflects a decline, falling below the industry average with a current EPS of 2.0.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.92.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.87 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.63 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): GMS's EV/EBITDA ratio, lower than industry averages at 7.23, indicates attractively priced shares.

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 Activity Matters in Finance

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

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

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 GMS's Insider Trades.

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