Dream Finders Homes, Inc. (NASDAQ:DFH) President and CEO Patrick O. Zalupski has sold a significant portion of his holdings in the company, according to a recent filing. The transactions, which took place on May 16 and 17, involved the sale of company stock totaling over $1.3 million.
Zalupski's stock sales were executed at varying prices, ranging from $29.08 to $31.87 per share. On May 16, he sold shares at weighted average prices that fluctuated between $28.69 and $29.68 for one batch, $29.70 and $30.70 for another, $30.71 and $31.66 for a third, and $31.77 to $32.00 for the final batch of the day. The following day, May 17, the sales continued at weighted average prices ranging from $28.43 to $29.43, and finally, at $29.44 to $29.47.
The SEC filing detailed multiple transactions, with the largest single sale on May 17 involving 22,047 shares at an average price of $29.14. The total value for all the sales transactions reported reached $1,364,863.
Post-transaction, Zalupski still holds a substantial amount of Dream Finders Homes stock, including 1,278,526 shares of Class A common stock directly and additional shares indirectly through trusts and holdings companies. Notably, the filing also indicated that Zalupski owns 57,820,586 shares of Class B common stock, which is convertible into Class A stock at any time, as well as shares held in a 401(k) account and by trusts established for the benefit of his children.
The reported sales took place under a trading plan in accordance with Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. Dream Finders Homes, based in Jacksonville, Florida, specializes in building a wide range of homes and has been expanding its operations across the United States.
InvestingPro Insights
In light of the recent insider transactions at Dream Finders Homes, Inc. (NASDAQ:DFH), investors may find the following metrics from InvestingPro insightful. The company is currently trading at a market capitalization of $2.74 billion, with a P/E ratio of 10.76. This valuation metric suggests that the stock could be trading at a discount relative to its near-term earnings growth, as indicated by an adjusted P/E ratio for the last twelve months as of Q1 2024 of 8.33. Additionally, the PEG ratio for the same period stands at 0.54, which might indicate that the stock is potentially undervalued based on expected growth rates.
Despite the recent volatility in stock price, with a 1-month total return of -13.35%, Dream Finders Homes has shown a significant return over the last year, with a 1-year price total return of 69.84%. This performance could be appealing to investors looking for growth potential. Moreover, the company's revenue growth for the last twelve months as of Q1 2024 was 10.42%, highlighting a positive trend in the company's financials.
For those seeking more comprehensive analysis, there are additional InvestingPro Tips available for Dream Finders Homes, including insights on the company's liquidity, debt levels, and profitability. In fact, there are 9 more tips listed on InvestingPro, which can be accessed at: https://www.investing.com/pro/DFH. For readers interested in a deeper dive into the financial health and forecast for Dream Finders Homes, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.