Executive Chair Of Core & Main Makes $7.77M Sale

Stephen O LeClair, Executive Chair at Core & Main CNM, executed a substantial insider sell on July 8, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, LeClair sold 125,000 shares of Core & Main. The total transaction value is $7,767,601.

Core & Main's shares are actively trading at $62.41, experiencing a down of 0.0% during Wednesday's morning session.

Unveiling the Story Behind Core & Main

Core & Main Inc is a specialty distributor focusing on water, wastewater, storm drainage, and fire protection products and services. Catering to municipalities, private water companies, and contractors, it serves municipal, non-residential, and residential markets nationwide. Its diverse product line includes pipes, valves, fittings, storm drainage products, fire protection products, and meter products. Revenue is principally generated from pipes, valves, and fittings. The company operates across three construction sectors: municipal, non-residential, and residential, contributing to reliable infrastructure development nationwide.

Core & Main: A Financial Overview

Revenue Growth: Core & Main's revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2025, the company achieved a revenue growth rate of approximately 9.76%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 26.69%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Core & Main's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.53.

Debt Management: Core & Main's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.45.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 28.89 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.64 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): With an impressive EV/EBITDA ratio of 15.64, Core & Main demonstrates exemplary market valuation, surpassing industry averages.

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

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Transaction Codes Worth Your Attention

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 Core & Main's Insider Trades.

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