Equifax Inc . (NYSE:EFX) Executive Vice President and Chief Legal Officer, John J. Kelley III, recently sold 1,000 shares of common stock, according to a recent SEC filing. The shares were sold at a price of $272.92 each, amounting to a total transaction value of $272,920. Following this sale, Kelley holds 11,269 shares. The transaction was conducted under a pre-established Rule 10b5-1 trading plan, which Kelley adopted on May 28, 2024.
In other recent news, Equifax Inc. reported a robust third quarter performance, with revenue rising 9% year-over-year to $1.42 billion. This strong performance was underscored by a 36% increase in U.S. mortgage revenue, 18% growth in international revenue, and a 29% surge in government sector revenue.
Despite these positive results, the company faced challenges in its employer revenues, primarily due to declines in Employee Retention Credit and onboarding revenues. Equifax projects fourth-quarter revenue between $1.438 billion and $1.458 billion, marking a 9% increase year-over-year.
Further, Equifax has raised its full-year guidance and continues to make progress in its cloud transformation efforts, with 80% of revenue now in the Equifax Cloud. The company aims to reach 90% by year-end.
In addition, Equifax's strategic partnership with Workday (NASDAQ:WDAY) is expected to enhance verification services and add approximately 5 million records over the coming quarters. Looking ahead, Equifax plans to commence dividends and stock buybacks in 2025. These are the latest developments in the company's ongoing efforts to deliver value to its investors.
InvestingPro Insights
To provide additional context to John J. Kelley III's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Equifax Inc. (NYSE:EFX).
According to InvestingPro data, Equifax boasts a market capitalization of $33.27 billion, reflecting its significant presence in the credit reporting and data analytics industry. The company's revenue for the last twelve months as of Q3 2024 stood at $5.59 billion, with a notable revenue growth of 8.79% during this period.
One of the InvestingPro Tips highlights Equifax's impressive gross profit margins, which is supported by the data showing a gross profit margin of 55.53% for the last twelve months. This strong profitability metric underscores the company's ability to maintain pricing power and efficiency in its operations.
Another relevant InvestingPro Tip points out that Equifax has maintained dividend payments for 54 consecutive years. This long-standing commitment to shareholder returns aligns with the company's current dividend yield of 0.58%, as reported by InvestingPro. Such consistency in dividend payments may be of interest to investors looking for stable income streams.
It's worth noting that while the stock has shown a strong performance with a 67.03% total return over the past year, it is currently trading at a high P/E ratio of 59.05. This valuation metric, combined with the InvestingPro Tip indicating that the stock is trading at a high earnings multiple, suggests that investors are pricing in significant future growth expectations.
For readers interested in a more comprehensive analysis, InvestingPro offers 17 additional tips for Equifax, providing a deeper dive into the company's financial health and market position. These insights can be particularly valuable for investors looking to make informed decisions in light of recent insider transactions like the one reported in this article.
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