A substantial insider sell was reported on December 5, by Chason Carroll, SVP at Mueller Water Products MWA, based on the recent SEC filing.
What Happened: Carroll's decision to sell 2,954 shares of Mueller Water Products was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $75,563.
Mueller Water Products's shares are actively trading at $25.26, experiencing a down of 0.0% during Thursday's morning session.
Get to Know Mueller Water Products Better
Mueller Water Products Inc is a U.S.-based company that manufactures and sells products and services used in the transmission, distribution, and measurement of water. The company operates in two segments Water Flow Solutions and Water Management Solutions. The Water Flow Solutions segment, which derives maximum revenue for the company, includes products like iron gate valves, specialty valves, and service brass products. Water Management Solutions' portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, and pressure management and control products and solutions. Geographically, the company derives a majority of its revenue from the United States and the rest from Canada and other international locations.
Mueller Water Products: Delving into Financials
Revenue Growth: Mueller Water Products'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 15.53%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.
Insights into Profitability:
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Gross Margin: The company faces challenges with a low gross margin of 31.85%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Mueller Water Products's EPS is below the industry average. The company faced challenges with a current EPS of 0.06. This suggests a potential decline in earnings.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.59, caution is advised due to increased financial risk.
Evaluating Valuation:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 34.14, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: The current P/S ratio of 3.01 is above industry norms, reflecting an elevated valuation for Mueller Water Products's stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 16.45 reflects market recognition of Mueller Water Products's value, positioning it as more highly valued compared to industry peers.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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Illuminating the Importance of Insider Transactions
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.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes Worth Your Attention
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 Mueller Water Products's Insider Trades.
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