In a recent transaction on May 24, Lee Fisher, a director of Rex American Resources (NASDAQ:AREC) Corp (NYSE:REX), sold 4,362 shares of the company's stock at an average price of $56.42 per share, resulting in a total value of $246,102. The sale was disclosed in a legal filing with the Securities and Exchange Commission.
Following the sale, Fisher's direct ownership in the company stands at 6,001 shares. The transaction suggests a significant change in Fisher's holdings, potentially reflecting a strategic decision regarding his investment in Rex American Resources.
Investors often monitor insider transactions as they can provide insights into how executives and directors perceive the company's future prospects. While the reasons behind Fisher's sale have not been publicly disclosed, such transactions are closely watched for the signals they may send about the company's financial health and managerial expectations.
Rex American Resources Corp, with its ticker symbol NYSE:REX, operates in the industrial organic chemicals sector and has undergone several name changes in its history, formerly known as Rex Stores Corp and Audio Video Affiliates Inc. The company is incorporated in Delaware and headquartered in Dayton, Ohio.
The details of the transaction were formalized by Edward M. Kress, Attorney in Fact for Lee Fisher, and reported to the SEC on May 29. Shareholders and potential investors can access the full disclosure for further details on the company's investor relations website or the SEC's EDGAR database.
InvestingPro Insights
As investors digest the recent insider sale by Lee Fisher, a director of Rex American Resources Corp (NYSE:REX), it's important to consider the company's current financial standing and market performance. According to InvestingPro, Rex American Resources holds more cash than debt on its balance sheet, which may provide some reassurance about the company's financial stability in uncertain times. Additionally, the company is trading at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 14.29, suggesting that the stock may be undervalued given its earnings trajectory.
Despite the insider sale, the company has experienced a strong return over the last year, with a 54.18% price total return, and analysts predict that Rex American Resources will be profitable this year. This is in line with the company's performance over the last twelve months, which has been profitable, as indicated by the basic EPS (Continuing Operations) of $3.76.
For those looking to delve deeper into the company's metrics and future outlook, there are additional InvestingPro Tips available on the platform. Currently, InvestingPro offers 11 more tips for Rex American Resources, which can be accessed at https://www.investing.com/pro/REX. For investors interested in taking advantage of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
InvestingPro Data also shows that the company's market capitalization stands at $938.73M USD, and while analysts anticipate a sales decline in the current year, with a revenue growth rate of -10.48% over the last twelve months, the company's liquid assets still exceed its short-term obligations. This data provides a comprehensive picture of the company's financial health that may influence investment decisions.
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