President & CEO Of Arcosa Makes $498K Buy

On March 10, a substantial insider purchase was made by Antonio Carrillo, President & CEO at Arcosa ACA, as per the latest SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Carrillo purchased 6,345 shares of Arcosa, demonstrating confidence in the company’s growth potential. The total value of the transaction stands at $498,438.

As of Tuesday morning, Arcosa shares are up by 0.38%, currently priced at $78.85.

About Arcosa

Arcosa Inc is a manufacturer and producer of infrastructure-related products and services. It operates in three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Transportation Products segment manufactures and sells products for the inland waterway and rail transportation industries. The Engineered Structures segment manufactures and sells products for energy-related businesses, including structural wind towers, telecommunication structures, steel utility structures for electricity transmission and distribution, and storage and distribution containers.

Financial Insights: Arcosa

Positive Revenue Trend: Examining Arcosa’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.43% as of 31 December, 2024, showcasing a substantial increase in 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.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 19.35%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Arcosa exhibits below-average bottom-line performance with a current EPS of -0.16.

Debt Management: Arcosa’s debt-to-equity ratio is below the industry average at 0.7, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 41.13 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.49, Arcosa’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 13.47, the company’s market valuation exceeds industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

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 Arcosa’s Insider Trades.

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