Troy Weaver At Axalta Coating Sys Exercises Options Worth $47K

A large exercise of company stock options by Troy Weaver, President at Axalta Coating Sys AXTA was disclosed in a new SEC filing on February 12, as part of an insider exercise.

What Happened: In an insider options sale disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, Weaver, President at Axalta Coating Sys, exercised stock options for 10,457 shares of AXTA. The transaction value amounted to $47,161.

During Thursday’s morning session, Axalta Coating Sys shares down by 0.0%, currently priced at $37.01. Considering the current price, Weaver’s 10,457 shares have a total value of $47,161.

All You Need to Know About Axalta Coating Sys

Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific and Latin America.

Breaking Down Axalta Coating Sys’s Financial Performance

Revenue Growth: Axalta Coating Sys’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 0.84%. This indicates a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Analyzing Profitability Metrics:

• Gross Margin: With a high gross margin of 35.0%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Axalta Coating Sys’s EPS is below the industry average. The company faced challenges with a current EPS of 0.46. This suggests a potential decline in earnings.

Debt Management: With a high debt-to-equity ratio of 1.85, Axalta Coating Sys faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 20.79 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.55 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 11.11, Axalta Coating Sys could be considered undervalued.

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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Why Insider Transactions Are Key in Investment Decisions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Axalta Coating Sys’s Insider Trades.

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