Thomas E Ferguson, President and CEO at AZZ AZZ, reported an insider sell on May 6, according to a new SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Ferguson executed a sale of 18,851 shares of AZZ with a total value of $1,694,893.
The latest market snapshot at Wednesday morning reveals AZZ shares up by 0.23%, trading at $90.0.
All You Need to Know 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.
AZZ: Financial Performance Dissected
Negative Revenue Trend: Examining AZZ’s financials over 3 months reveals challenges. As of 28 February, 2025, the company experienced a decline of approximately -4.01% in revenue growth, reflecting a decrease in 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.
Analyzing Profitability Metrics:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.37%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): AZZ’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.68.
Debt Management: With a below-average debt-to-equity ratio of 0.84, AZZ adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Metrics:
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Price to Earnings (P/E) Ratio: AZZ’s current Price to Earnings (P/E) ratio of 50.16 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
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Price to Sales (P/S) Ratio: The P/S ratio of 1.67 is lower than the industry average, implying a discounted valuation for AZZ’s stock in relation to 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 10.66 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Exploring the Significance of Insider Trading
It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Transaction Codes Worth Your Attention
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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