Vulcan Materials Insider Trades Send A Signal

It was reported on November 12, that Jerry Perkins Jr, Senior Vice President at Vulcan Materials VMC executed a significant insider sell, according to an SEC filing.

What Happened: Jr's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 1,657 shares of Vulcan Materials. The total transaction value is $481,491.

During Wednesday's morning session, Vulcan Materials shares down by 0.0%, currently priced at $288.38.

Get to Know Vulcan Materials Better

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2023, Vulcan sold 234.3 million tons of aggregates, 13.4 million tons of asphalt mix, and 7.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.

Vulcan Materials's Economic Impact: An Analysis

Decline in Revenue: Over the 3 months period, Vulcan Materials faced challenges, resulting in a decline of approximately -8.32% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 28.21%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Vulcan Materials exhibits below-average bottom-line performance with a current EPS of 1.57.

Debt Management: With a below-average debt-to-equity ratio of 0.49, Vulcan Materials adopts a prudent financial strategy, indicating a balanced approach to debt management.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 45.06 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 5.19 is above industry norms, reflecting an elevated valuation for Vulcan Materials's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 21.31, Vulcan Materials demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Why Pay Attention to Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Transaction Codes Worth Your Attention

When analyzing transactions, investors tend to focus on those in the open market, 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 Vulcan Materials's Insider Trades.

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