Christopher M. Killian, SVP & CTO at Eastman Chemical EMN, executed a substantial insider sell on November 7, according to an SEC filing.

What Happened: Killian’s decision to sell 3,061 shares of Eastman Chemical was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $321,405.

During Friday’s morning session, Eastman Chemical shares up by 0.7%, currently priced at $104.26.

Get to Know Eastman Chemical Better

Established in 1920 to produce chemicals for Eastman Kodak, Eastman Chemical has grown into a global specialty chemical company with manufacturing sites around the world. The company generates the majority of its sales outside of the United States, with a strong presence in Asian markets. During the past several years, Eastman has sold noncore businesses, choosing to focus on higher-margin specialty product offerings.

Financial Milestones: Eastman Chemical’s Journey

Revenue Growth: Eastman Chemical displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 8.69%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 24.55%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Eastman Chemical’s EPS is below the industry average. The company faced challenges with a current EPS of 1.55. This suggests a potential decline in earnings.

Debt Management: Eastman Chemical’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.89, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Eastman Chemical’s P/E ratio of 13.88 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.31 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): With an EV/EBITDA ratio lower than industry benchmarks at 8.57, Eastman Chemical presents an attractive value opportunity.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Eastman Chemical’s Insider Trades.

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