On September 30, a recent SEC filing unveiled that Agust F Hafberg, SVP & Chief Commercial Officer at Century Aluminum (NASDAQ:CENX) made an insider sell.
What Happened: Hafberg's decision to sell 9,493 shares of Century Aluminum was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $264,949.
Monitoring the market, Century Aluminum's shares down by 0.72% at $29.15 during Wednesday's morning.
Delving into Century Aluminum's Background
Century Aluminum Co produces primary aluminum standard grade and value-added products. The firm operates smelter facilities in the United States and Iceland. The majority of revenue is generated from Glencore, which agreed to purchase nearly all of Century Aluminum's North American production. Century purchases nearly all of its alumina from Glencore. The company produces high purity aluminum, standard-grade aluminum sow and tee bars, and value-added billet and foundry products. Century also owns a carbon anode production facility in the Netherlands.
Century Aluminum's Economic Impact: An Analysis
Revenue Growth: Century Aluminum's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 12.0%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.
Key Profitability Indicators:
-
Gross Margin: The company shows a low gross margin of 5.76%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
-
Earnings per Share (EPS): With an EPS below industry norms, Century Aluminum exhibits below-average bottom-line performance with a current EPS of -0.05.
Debt Management: With a below-average debt-to-equity ratio of 0.67, Century Aluminum adopts a prudent financial strategy, indicating a balanced approach to debt management.
Exploring Valuation Metrics Landscape:
-
Price to Earnings (P/E) Ratio: The current P/E ratio of 24.47 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
-
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.16 suggests overvaluation in the eyes of investors, considering sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Century Aluminum's EV/EBITDA ratio of 13.85 exceeds industry averages, indicating a premium valuation in the market
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.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Exploring the Significance of Insider Trading
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Deciphering Transaction Codes in Insider Filings
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 Century Aluminum'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.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.