\s\ Nathan O' Neill, Vice President at United States Lime USLM, reported an insider sell on November 13, according to a new SEC filing.
What Happened: Neill's decision to sell 1,750 shares of United States Lime was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $244,527.
The latest market snapshot at Thursday morning reveals United States Lime shares up by 1.17%, trading at $144.25.
About United States Lime
United States Lime & Minerals Inc is engaged in the business of manufacturing lime and limestone products including PLS, quicklime, hydrated lime, and lime slurry. It supplies its products predominantly to the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), oil and gas services, roof shingle manufacturers and agriculture (including poultry and cattle feed producers) industries. The company operates through its Lime and Limestone Operations segment.
Breaking Down United States Lime's Financial Performance
Positive Revenue Trend: Examining United States Lime's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 19.43% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.
Analyzing Profitability Metrics:
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Gross Margin: The company maintains a high gross margin of 48.21%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): United States Lime's EPS reflects a decline, falling below the industry average with a current EPS of 1.17.
Debt Management: United States Lime's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Valuation Overview:
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Price to Earnings (P/E) Ratio: United States Lime's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 41.45.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 13.48, United States Lime's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 27.96 reflects market recognition of United States Lime's value, positioning it as more highly valued compared to industry peers.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Why Insider Activity Matters in Finance
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 the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
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 United States Lime's Insider Trades.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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