Insider Unloading: Thomas E Ferguson Sells $2.31M Worth Of AZZ Shares

Thomas E Ferguson, President and CEO at AZZ AZZ, disclosed an insider sell on May 2, according to a recent SEC filing.

What Happened: Ferguson's recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday unveiled the sale of 26,889 shares of AZZ. The total transaction value is $2,309,173.

In the Friday's morning session, AZZ's shares are currently trading at $89.0, experiencing a up of 2.44%.

Delving into AZZ's Background

AZZ Inc is a provider of galvanizing and a variety of metal coating solutions and coil coating solutions to a broad range of end markets in North America. The company's operating segment consists of Metal Coatings, Precoat Metals, and Infrastructure Solutions. The company generates the majority of its revenue from the Precoat Metals segment, which provides coil coating application of protective and decorative coatings and related value-added downstream processing for steel and aluminum coils. Geographically, the company generates the majority of its revenue from the United States.

Key Indicators: AZZ's Financial Health

Revenue Challenges: AZZ's revenue growth over 3 months faced difficulties. As of 28 February, 2025, the company experienced a decline of approximately -4.01%. This indicates a decrease in 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.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 22.37%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): AZZ's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.68.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.84.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: AZZ's current Price to Earnings (P/E) ratio of 48.54 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.62 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): With a lower-than-industry-average EV/EBITDA ratio of 10.4, AZZ presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Impact of Insider Transactions on Investments

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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 Worth Your Attention

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 AZZ's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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