Insider Transaction: Jesse Collins Jr Sells $744K Worth Of Arcosa Shares

Jesse Collins Jr, Group President at Arcosa ACA, disclosed an insider sell on June 17, according to a recent SEC filing.

What Happened: Jr opted to sell 8,616 shares of Arcosa, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $744,388.

In the Wednesday's morning session, Arcosa's shares are currently trading at $86.66, experiencing a down of 0.0%.

Delving into Arcosa's Background

Arcosa Inc is a manufacturer and producer of infrastructure-related products and services. It operates in three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Transportation Products segment manufactures and sells products for the inland waterway and rail transportation industries. The Engineered Structures segment manufactures and sells products for energy-related businesses, including structural wind towers, telecommunication structures, steel utility structures for electricity transmission and distribution, and storage and distribution containers.

Arcosa: Financial Performance Dissected

Revenue Growth: Arcosa displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 5.58%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 19.84%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Arcosa's EPS reflects a decline, falling below the industry average with a current EPS of 0.48.

Debt Management: Arcosa's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.69.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 54.5 is lower than the industry average, implying a discounted valuation for Arcosa's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.63, which is lower than the industry average. This suggests a possible undervaluation based 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 14.07, Arcosa presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Unmasking 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 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.

Navigating the World of Insider Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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 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 Arcosa's Insider Trades.

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