Insider Transaction: ALAN MCKIM Sells $11.14M Worth Of Clean Harbors Shares

Revealing a significant insider sell on March 4, ALAN MCKIM, Exec Chair at Clean Harbors CLH, as per the latest SEC filing.

What Happened: MCKIM's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 52,999 shares of Clean Harbors. The total transaction value is $11,144,847.

The latest market snapshot at Tuesday morning reveals Clean Harbors shares down by 0.0%, trading at $207.79.

About Clean Harbors

Clean Harbors Inc is an environmental and industrial services provider. It provides parts cleaning and related environmental services to commercial, industrial, and automotive customers. Its business segments are Environmental Services and Safety-Kleen Sustainability Solutions. The company generates the majority of its revenues from the Environmental Services segment.

Clean Harbors: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Clean Harbors showcased positive performance, achieving a revenue growth rate of 6.95% as of 31 December, 2024. This reflects a substantial increase 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.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 29.88%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Clean Harbors's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.56.

Debt Management: Clean Harbors's debt-to-equity ratio is below the industry average at 1.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 28.0 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.91 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 12.35, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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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Understanding the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

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 Clean Harbors's Insider Trades.

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