It was reported on November 21, that Timothy W Byrne, President & CEO at United States Lime USLM executed a significant insider sell, according to an SEC filing.

What Happened: Byrne opted to sell 44,215 shares of United States Lime, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction’s total worth stands at $6,219,751.

Tracking the Friday’s morning session, United States Lime shares are trading at $150.9, showing a up of 0.38%.

Unveiling the Story Behind United States Lime

United States Lime & Minerals Inc is engaged in the business of manufacturing lime and limestone products including PLS, quicklime, hydrated lime, and lime slurry. It supplies its products predominantly to the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), oil and gas services, roof shingle manufacturers and agriculture (including poultry and cattle feed producers) industries. The company operates through its Lime and Limestone Operations segment.

Understanding the Numbers: United States Lime’s Finances

Revenue Growth: United States Lime’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 19.43%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 48.21%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, United States Lime exhibits below-average bottom-line performance with a current EPS of 1.17.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: United States Lime’s current Price to Earnings (P/E) ratio of 43.68 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 14.2 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 29.56, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.

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.

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Uncovering the Importance of Insider Activity

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

The Insider’s Guide to Important Transaction Codes

When it comes to 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 indicates 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 United States Lime’s Insider Trades.

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