Vulcan Materials: 4 Different Insiders Have Sold Shares During The Last 30 Days

Jan.17.14 | About: Vulcan Materials (VMC)

In this article, I will feature one industrial stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Vulcan Materials Company (NYSE:VMC) engages in the production and sale of construction aggregates, as well as asphalt mix, ready-mixed concrete, and cement primarily in the United States.

Click to enlarge

Insider selling during the last 30 days

Here is a table of Vulcan Materials' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Wayne Houston SVP Jan 10 10,000 No 1,870 shares 84.2%
Daniel Sansone CFO Jan 10 9,500 No 27,998 shares + 2,500 options 23.8%
David Clements SVP Dec 30 1,400 No 0 shares 100%
Thomas Hill COO Dec 30-31 5,000 No 5,951 shares + 5,000 options 31.3%
Click to enlarge

There have been 25,900 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Vulcan Materials' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
January 2014 19,500 0
December 2013 6,400 0
November 2013

1,400

0
October 2013 0 0
September 2013 1,969 0
August 2013 0 4,000
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 4,900 0
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 34,169 shares sold, and there have been 4,000 shares purchased by insiders since January 2013. The month of January 2014 has seen the most insider selling.

Financials

Vulcan Materials reported the third-quarter financial results on November 4 with the following highlights:

Revenue $775.2 million
Net income $41.4 million
Cash $245.8 million
Debt $2.5 billion
Click to enlarge

Click to enlarge

(Source: Earnings presentation)

Outlook

Vulcan Materials expects operating earnings to improve in full-year 2013.

Click to enlarge

(Source: Earnings presentation)

Competition

Vulcan Materials' competitors include Cemex (NYSE:CX), and Martin Marietta Materials (NYSE:MLM). Here is a table comparing these companies.

Company VMC CX MLM Industry Average (General Building Materials)
Market Cap: 7.69B 14.26B 4.93B 1.04B
Employees: 7,028 42,853 4,948 2.21K
Qtrly Rev Growth (yoy): 0.12 0.03 0.12 0.04
Revenue: 2.70B 15.07B 2.12B 2.21B
Gross Margin: 0.14 0.31 0.16 0.31
EBITDA: 418.45M 2.49B 337.23M 194.34M
Operating Margin: 0.04 0.09 0.08 0.06
Net Income: 15.15M -1.06B 106.27M N/A
EPS: 0.14 -0.91 2.31 0.23
P/E: 431.75 N/A 46.19 16.23
PEG (5 yr expected): -65.18 -12.34 2.66 1.39
P/S: 2.83 0.92 2.30 0.54
Click to enlarge
Click to enlarge

Vulcan Materials has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
CX N/A N/A
MLM 0 101,602
Click to enlarge

Only Vulcan Materials has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Vulcan Materials, and there have not been any insiders buying Vulcan Materials during the last 30 days. All four of these insiders decreased their holdings by more than 10%. Vulcan Materials has an insider ownership of 0.10%.

There are six analyst buy ratings, eight neutral ratings, and one sell rating with an average price target of $57.30. Before entering short Vulcan Materials, I would like to get a bearish confirmation from the Point and Figure chart. The three main reasons for the proposed short entry are bearish analyst price targets, relatively high P/S ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.