Equifax Inc . (NYSE:EFX) Senior Vice President and Corporate Controller, James M. Griggs, recently engaged in significant trading activity involving the company's stock, according to a new SEC filing. On May 24, Griggs executed multiple sales of non-derivative securities, totaling over $575,000.
The transactions involved the sale of common stock at weighted average prices that varied across the deals. The prices for these sales ranged between $235.51 and $239.87. Specifically, the sales included 105 shares at an average price of $238.20, 228 shares at $235.51, 289 shares at $236.88, 320 shares at $239.87, and the largest single transaction of 1,468 shares at an average price of $239.16.
In addition to the sales, Griggs also acquired shares through the exercise of options. These "buy" transactions totaled $234,315, with prices per share of $97.19 and $105.99. The SEC filing did not disclose the exact number of shares purchased at each price point, but the total number of shares acquired through these transactions was 2,410.
The trading plan under which these transactions were conducted was adopted on February 23, 2024, in accordance with SEC Rule 10b5-1, which allows company insiders to set up a predetermined plan to buy or sell company stock. The plan is designed to prevent any accusations of insider trading by automating the transactions and removing discretionary decisions from the process.
The filing also included information regarding derivative securities, specifically stock options/rights to buy, which Griggs exercised. However, the total dollar value for these derivative transactions was not provided in the SEC document.
Investors and followers of Equifax Inc. often monitor the trading activity of company insiders like Griggs for insights into the company's performance and the confidence that executives have in the firm's future. Insider transactions are publicly disclosed through SEC filings to ensure transparency and maintain fair markets.
Equifax Inc. has not made any official statements regarding the transactions at this time.
InvestingPro Insights
Amid the recent trading activity by Equifax Inc.'s (NYSE:EFX) Senior Vice President and Corporate Controller, James M. Griggs, investors may find additional context in the company's financial metrics and analyst perspectives. As of the last twelve months leading up to Q1 2024, Equifax boasts an impressive gross profit margin of 55.49%, indicating strong profitability in its operations. This figure is supported by a gross profit of $2,970.2 million, reflecting the company's ability to maintain high margins.
However, it's worth noting that Equifax is trading at a high earnings multiple, with a P/E ratio of 50.87 and an adjusted P/E ratio of 48.58 for the same period. This suggests that the market has high expectations for the company's future earnings growth. Additionally, the company has been able to sustain dividend payments for an impressive 54 consecutive years, which might be a reassuring sign for income-focused investors. The current dividend yield stands at 0.66% as of the most recent data.
For those interested in further analysis, there are 14 additional InvestingPro Tips available for Equifax Inc., which can provide deeper insights into the company's financial health and market position. These tips can be accessed by visiting InvestingPro, where users can also take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With Equifax's next earnings date scheduled for July 17, 2024, investors will be looking to see if the company's financial performance aligns with market valuations and whether insider trading activity such as that of Mr. Griggs aligns with broader company trends.
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