Insider Unloading: Craig D Apolinsky Sells Options, Realizes $1.48M

A significant insider transaction involving the exercise of company stock options was reported on March 28, by Craig D Apolinsky, SVP at GMS GMS, as per the latest SEC filing.

What Happened: Apolinsky, SVP at GMS, exercised stock options for 20,000 shares of GMS stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $23.11 per share.

GMS shares are trading, exhibiting up of 0.51% and priced at $97.34 during Friday's morning. This values Apolinsky's 20,000 shares at $1,484,600.

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.

Key Indicators: GMS's Financial Health

Revenue Growth: Over the 3 months period, GMS showcased positive performance, achieving a revenue growth rate of 1.92% as of 31 January, 2024. This reflects 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.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 32.96%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): GMS's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.3.

Debt Management: GMS's debt-to-equity ratio is below the industry average. With a ratio of 0.86, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.53, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.74, 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 8.43, GMS presents an attractive value opportunity.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Navigating the World of Insider Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 GMS's Insider Trades.

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