Insider Transaction: Thomas Hill Sells $24.10M Worth Of Vulcan Materials Shares

It was reported on May 21, that Thomas Hill, Chairman & CEO at Vulcan Materials VMC executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Hill executed a sale of 87,552 shares of Vulcan Materials with a total value of $24,103,042.

Monitoring the market, Vulcan Materials's shares up by 0.02% at $270.6 during Thursday's morning.

Unveiling the Story Behind Vulcan Materials

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 2024, Vulcan sold 219.9 million tons of aggregates, 13.6 million tons of asphalt mix, and 3.6 million cubic yards of ready-mix. As of Dec. 31, 2023, the company had nearly 16 billion tons of aggregates reserves.

Vulcan Materials: Delving into Financials

Revenue Growth: Vulcan Materials's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 5.75%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 22.35%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Vulcan Materials's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.97.

Debt Management: With a high debt-to-equity ratio of 0.67, Vulcan Materials faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Vulcan Materials's current Price to Earnings (P/E) ratio of 38.05 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.8 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): The company's EV/EBITDA ratio 19.84 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Navigating the Impact of Insider Transactions on Investments

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Cracking Transaction Codes

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 Vulcan Materials's Insider Trades.

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