On May 24, 2023, Michael Haack, President and CEO of Eagle Materials Inc (EXP, Financial), sold 28,030 shares of the company's stock. This sale comes as part of a series of transactions by Haack over the past year, during which he has sold a total of 46,638 shares and purchased none.
Who is Michael Haack?
Michael Haack has been with Eagle Materials Inc since 2014, initially serving as the Executive Vice President of Gypsum Wallboard and Paperboard before being promoted to President and CEO in 2019. Under his leadership, the company has continued to grow and expand its operations.
About Eagle Materials Inc
Eagle Materials Inc is a leading producer of building materials, including gypsum wallboard, cement, recycled paperboard, and concrete and aggregates. The company operates through two main segments: Heavy Materials, which includes cement and aggregates, and Light Materials, which includes gypsum wallboard and recycled paperboard. Eagle Materials Inc is headquartered in Dallas, Texas, and serves customers across the United States.
Insider Trends
Over the past year, there have been no insider purchases of Eagle Materials Inc stock. However, there have been 17 insider sells during the same period. This trend suggests that insiders may be taking advantage of the stock's current valuation to realize gains on their investments.
Valuation
On the day of Michael Haack's recent sale, shares of Eagle Materials Inc were trading at $165.34 apiece, giving the stock a market cap of $5,880.351 million. The price-earnings ratio is 13.34, which is lower than the industry median of 14.06 and lower than the company's historical median price-earnings ratio.
With a price of $165.34 and a GuruFocus Value of $166.97, Eagle Materials Inc has a price-to-GF-Value ratio of 0.99. This indicates that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Insider selling activity, such as Michael Haack's recent sale, can sometimes be an indicator of a company's future performance or insiders' perception of the stock's valuation. In the case of Eagle Materials Inc, the stock's fairly valued status and the absence of insider purchases over the past year may suggest that insiders believe the stock is appropriately priced at current levels.
However, it is essential to consider other factors, such as the company's financial performance, industry trends, and overall market conditions, when analyzing insider transactions. While insider selling can provide valuable insights, it should not be the sole basis for making investment decisions.
Investors should continue to monitor Eagle Materials Inc's performance, insider transactions, and other relevant factors to make informed decisions about the stock.
