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, serving in various roles before being appointed as President and CEO in 2019. Under his leadership, the company has continued to grow and expand its operations in the building materials industry.
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 committed to providing high-quality products and services to its customers while maintaining a focus on sustainability and environmental responsibility.
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 could indicate that insiders believe the stock is overvalued or that they are taking advantage of favorable market conditions to sell their shares.
Valuation
On the day of Michael Haack's recent sale, shares of Eagle Materials Inc were trading at $165.34 apiece, giving the company a market capitalization of $5,880.353 million. The stock's price-earnings ratio is 13.34, which is lower than the industry median of 13.99 and lower than the company's historical median price-earnings ratio.
With a price of $165.34 and a GuruFocus Value of $167.06, 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 transactions can provide valuable insights into a company's prospects and the sentiment of its executives. In the case of Eagle Materials Inc, the lack of insider purchases over the past year, combined with the 17 insider sells, could suggest that insiders are not particularly bullish on the stock's future performance. However, it is essential to consider other factors, such as the company's financial performance, industry trends, and overall market conditions, before drawing any conclusions.
The stock's fairly valued status, as indicated by its price-to-GF-Value ratio, suggests that the market has already priced in much of the company's growth potential. This could be one reason why insiders like Michael Haack are selling their shares. However, investors should always conduct their research and analysis before making any investment decisions.
In conclusion, the recent insider sell by Michael Haack, President and CEO of Eagle Materials Inc, is worth noting for investors. While the stock appears to be fairly valued, the lack of insider purchases and the number of insider sells over the past year could be a cause for concern. Investors should carefully consider these factors, along with the company's financial performance and industry trends, before making any investment decisions.
