It was reported on August 12, that Kurt L Russell, Chief Strategy Officer at AZZ (NYSE:AZZ) executed a significant insider sell, according to an SEC filing.
What Happened: Russell opted to sell 10,321 shares of AZZ, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $1,158,075.
The latest update on Wednesday morning shows AZZ shares up by 0.68%, trading at $114.34.
About 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.
Unraveling the Financial Story of AZZ
Revenue Growth: AZZ's remarkable performance in 3 months is evident. As of 31 May, 2025, the company achieved an impressive revenue growth rate of 2.12%. This signifies a substantial 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.
Exploring Profitability:
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Gross Margin: The company shows a low gross margin of 24.68%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): AZZ's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average 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.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 12.86 is lower than the industry average, implying a discounted valuation for AZZ's stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 2.16 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 7.91, AZZ presents an attractive value opportunity.
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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The Importance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
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.
Essential Transaction Codes Unveiled
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 AZZ's Insider Trades.
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