Jason L. Taylor, President of the West Division at Beacon Roofing Supply Inc. (NASDAQ:BECN), has sold shares of the company worth approximately $234,000. The transaction, which took place on October 7, 2024, involved 2,600 shares of common stock at a price of $90.00 per share.
This sale was conducted under a pre-arranged Rule 10b5-1(c) trading plan, which allows company insiders to set up a predetermined plan for buying or selling stocks at a time when they are not in possession of material non-public information. The adoption of such plans provides a defense against charges of insider trading.
Following the sale, Taylor's holdings in Beacon Roofing Supply decreased, yet he still retains 9,131 shares in the company. The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission dated October 9, 2024.
Beacon Roofing Supply, based in Herndon, Virginia, is a distributor of roofing materials and related building products. The company's stock is traded on the NASDAQ under the ticker symbol BECN.
In other recent news, Beacon has been actively expanding its operations through strategic acquisitions, including Chicago Metal Supply, Passaic Metal and Building Supplies Co., and SSR Roof Supply Ltd. These acquisitions are expected to enhance Beacon's service offerings and strengthen its presence in various regions. On the financial front, Beacon reported record quarterly sales of nearly $2.7 billion in Q2 of 2024, marking a 70% year-over-year increase, with growth seen across all three lines of business. Digital sales also saw a notable increase, growing approximately 22% year-over-year. However, the company's adjusted EBITDA for the quarter missed targets due to significant operational expenditure deleveraging. Despite this, Beacon projects around $750 million in free cash flow for the second half of the year. Stephens, a financial services firm, adjusted its price target for Beacon, reducing it to $95 from the previous $107, maintaining an Equal Weight rating on the stock. These are the recent developments from Beacon.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Beacon Roofing Supply's financial position and market performance. Despite the insider sale by Jason L. Taylor, the company has shown some positive indicators that investors might find intriguing.
According to InvestingPro Tips, management at Beacon Roofing Supply has been aggressively buying back shares, which could signal confidence in the company's future prospects. This buyback activity aligns with the company's financial strength, as InvestingPro data reveals that Beacon's liquid assets exceed its short-term obligations, indicating a solid financial foundation.
The company's stock has also demonstrated strong performance recently, with a significant 11.49% return over the last week and an impressive 18.58% return over the past month. This positive momentum is reflected in the stock's current price of $95.16, which is 89.63% of its 52-week high.
While the company was not profitable over the last twelve months, with a negative P/E ratio of -142.81, analysts are optimistic about its future. InvestingPro Tips indicate that net income is expected to grow this year, and analysts predict the company will return to profitability. This outlook is supported by the company's revenue growth of 9.86% over the last twelve months, reaching $9.47 billion.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Beacon Roofing Supply, providing a deeper understanding of the company's financial health and market position.
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