Marie Shelly Chadwick Executes Sell Order: Offloads $115K In Materion Stock

It was reported on December 10, that Marie Shelly Chadwick, Vice President at Materion MTRN executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Chadwick executed a sale of 1,000 shares of Materion with a total value of $115,923.

In the Wednesday's morning session, Materion's shares are currently trading at $113.3, experiencing a down of 0.0%.

Get to Know Materion Better

Materion Corp is a producer of engineered materials based in the United States. The company produces materials used in electrical, electronic, thermal, and structural applications. The company operates in four reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The majority of revenue is derived from Electronic Materials which produces chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire.

Materion: Financial Performance Dissected

Positive Revenue Trend: Examining Materion's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.35% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Holistic Profitability Examination:

• Gross Margin: With a low gross margin of 18.53%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Materion's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.07.

Debt Management: Materion's debt-to-equity ratio stands notably higher than the industry average, reaching 0.61. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 32.01 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.42 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 impressive EV/EBITDA ratio of 15.92, Materion demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Exploring the Significance of Insider Trading

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Exploring Key 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 Materion's Insider Trades.

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