Insider Move: Edward Lonergan Invests $74K In Owens-Corning Stock

A significant insider buy by Edward Lonergan, Board Member at Owens-Corning OC, was executed on April 29, and reported in the recent SEC filing.

What Happened: Lonergan demonstrated confidence in Owens-Corning by purchasing 445 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $74,982.

The latest market snapshot at Tuesday morning reveals Owens-Corning shares down by 0.63%, trading at $170.6.

Unveiling the Story Behind Owens-Corning

Owens-Corning Inc is a manufacturer of glass fiber utilized in composites and building materials. It has an integrated business model with three reportable segments: Composites, Insulation, and Roofing. It generates maximum revenue from the Roofing segment. Its Roofing segment laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials, and oxidized asphalt. It meets the growing demand for longer-lasting, aesthetically attractive laminate products with modest capital investment. Geographically the company generates the majority of its revenue from the United States.

Financial Milestones: Owens-Corning's Journey

Decline in Revenue: Over the 3 months period, Owens-Corning faced challenges, resulting in a decline of approximately -1.33% in revenue growth as of 31 March, 2024. This signifies a reduction 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.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 29.57%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Owens-Corning's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.42.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.63.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.88, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.6 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): Owens-Corning's EV/EBITDA ratio, lower than industry averages at 7.88, indicates attractively priced shares.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Exploring the Significance of Insider Trading

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Cracking Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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 Owens-Corning's Insider Trades.

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