Insider Decision: LEROY BALL Offloads $110K Worth Of Koppers Holdings Stock

LEROY BALL, CEO at Koppers Holdings KOP, executed a substantial insider sell on March 20, according to an SEC filing.

What Happened: BALL opted to sell 3,784 shares of Koppers Holdings, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction’s total worth stands at $110,768.

Koppers Holdings shares are trading down 0.0% at $29.77 at the time of this writing on Friday morning.

Discovering Koppers Holdings: A Closer Look

Koppers Holdings Inc through its subsidiaries, manufactures and sells wood products, wood treatment chemicals, and carbon compounds used in markets such as railroad, aluminum and steel, agriculture, utilities, and residential lumber. The company is organized into three business segments: railroad and utility products and services, performance chemicals, and carbon materials and chemicals. Its product portfolio includes treated and untreated wood products like crossties used in railroads, wood preservation chemicals, and carbon compounds such as creosote used in the treatment of wood crossties, among others. The majority of its revenue comes from the company’s railroad and utility products and services segment, and more than half of the company’s revenue is earned in the United States.

A Deep Dive into Koppers Holdings’s Financials

Revenue Growth: Koppers Holdings’s revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -7.05%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: With a high gross margin of 17.53%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Koppers Holdings exhibits below-average bottom-line performance with a current EPS of -0.5.

Debt Management: Koppers Holdings’s debt-to-equity ratio stands notably higher than the industry average, reaching 2.09. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 12.1, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.3, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 7.45, Koppers Holdings demonstrates exemplary market valuation, surpassing industry averages.

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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Exploring the Significance of Insider Trading

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

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Understanding Crucial Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Koppers Holdings’s Insider Trades.

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