Disclosed on October 22, Tracy D Crandall, VP at RPM Intl RPM, executed a substantial insider sell as per the latest SEC filing.

What Happened: Crandall opted to sell 3,718 shares of RPM Intl, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction’s total worth stands at $497,140.

RPM Intl shares are trading down 0.0% at $130.58 at the time of this writing on Wednesday morning.

Unveiling the Story Behind RPM Intl

RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributors, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a line of products ranging from niche applications of the other groups to marine finishes, to edible food colorings. The majority of revenue comes from North America.

Financial Milestones: RPM Intl’s Journey

Revenue Growth: RPM Intl’s revenue growth over a period of 3 months has faced challenges. As of 31 August, 2024, the company experienced a revenue decline of approximately -2.14%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 42.5%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): RPM Intl’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.78.

Debt Management: RPM Intl’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.89.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 27.38 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.3 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): RPM Intl’s EV/EBITDA ratio stands at 17.32, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Unmasking the Significance of Insider Transactions

It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 RPM Intl’s Insider Trades.

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