Joseph B. Armes, the Chairman, President, and CEO of CSW Industrials, Inc. (NASDAQ:CSWI), recently sold a significant portion of his holdings in the company. According to a Form 4 filed with the Securities and Exchange Commission, Armes disposed of a total of 1,000 shares of common stock on December 16, 2024. The shares were sold at prices ranging from $387.58 to $393.38, resulting in a total transaction value of $389,778. The sale comes as CSWI stock has delivered impressive returns, surging 87% year-to-date and achieving a market capitalization of $6.56 billion.
Following these transactions, Armes retains direct ownership of 49,698 shares. Additionally, he holds indirect ownership through JBA Family Partners, L.P. and an Employee Stock Ownership Plan (ESOP), with 1,500 and 3,142 shares, respectively. InvestingPro analysis shows the stock trading at elevated multiples with a P/E ratio of 52.7, suggesting premium valuations despite strong financial health ratings.
These sales were executed under a pre-established 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid potential accusations of insider trading. Based on InvestingPro's Fair Value analysis, the stock currently appears to be trading above its fundamental value.
In other recent news, CSW Industrials reported significant year-over-year increases in its second quarter of 2025 results, with revenue reaching $228 million and operating cash flow of $67 million. Earnings per diluted share stood at $2.26, while EBITDA was $61 million. The company also successfully raised $347 million through a public equity offering, eliminating all outstanding debt. CSW Industrials acquired PSP Products, enhancing the company's electrical product offerings. However, the company anticipates higher costs of goods sold in the second half of FY 2025 due to increased ocean freight rates, with management considering potential price increases.
Goldman Sachs initiated coverage on CSW Industrials with a Neutral rating and a price target of $450, while Wells Fargo (NYSE:WFC) and Citi also began coverage with Equal Weight and Neutral ratings, and price targets of $425 and $466, respectively. Analysts from James Perry acknowledged the challenge of higher costs but indicated the company's readiness to manage these through pricing strategies. These are recent developments around CSW Industrials.
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