Disclosed on July 22, Thomas E Ferguson, President and CEO at AZZ AZZ, executed a substantial insider sell as per the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Ferguson sold 26,516 shares of AZZ. The total transaction value is $2,939,415.
AZZ shares are trading down 0.0% at $110.52 at the time of this writing on Wednesday morning.
Unveiling the Story Behind AZZ
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.
Understanding the Numbers: AZZ's Finances
Revenue Growth: AZZ displayed positive results in 3 months. As of 31 May, 2025, the company achieved a solid revenue growth rate of approximately 2.12%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Analyzing Profitability Metrics:
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Gross Margin: The company faces challenges with a low gross margin of 24.68%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): AZZ's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 5.71.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.49.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: AZZ's P/E ratio of 12.52 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.1, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 7.73 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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Uncovering the Importance of Insider Activity
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
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 To Focus On
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of AZZ's Insider Trades.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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