Larry Fernandes, Senior Vice President and Chief Commercial and Sustainability Officer at Ingredion Inc . (NYSE:INGR), recently sold 35 shares of the company's common stock. The shares were sold at a price of $133.58 each, totaling approximately $4,675. Following this transaction, Fernandes holds 29,008.2738 shares directly and an additional 6,086.728 shares indirectly through a 401(k) plan. Additionally, Fernandes exercised employee stock options with a conversion price of $108.38, which were withheld to cover applicable taxes. These options, part of a grant made on February 13, 2024, will vest in three equal annual installments starting in February 2025.
In other recent news, Ingredion Incorporated reported a robust second quarter for 2024, with an 8% increase in adjusted operating income and gross margins improving by 240 basis points. Despite a 9% decline in sales, the company experienced volume growth across all segments, led by an 8% increase in the Texture and Healthful Solutions segment. Ingredion also revised its EPS guidance for the year 2024 upwards to a range of $9.70 to $10.20.
This strong performance prompted Barclays to upgrade Ingredion's stock from Equalweight to Overweight, setting a new price target at $145.00. Barclays noted the company's solid profitability and anticipated continued improvement driven by expected volume recovery and cost savings initiatives.
BMO Capital Markets also adjusted its outlook on Ingredion, increasing the price target to $128 while maintaining a Market Perform rating on the stock. The firm expressed confidence in the company's volume recovery and the accelerated pace of cost savings.
These recent developments highlight Ingredion's focus on growth, cost competitiveness, and sustainability, as well as its strategic investments aimed at driving future growth.
InvestingPro Insights
While Larry Fernandes's recent stock sale might raise eyebrows, it's important to contextualize this transaction within Ingredion's broader financial picture. According to InvestingPro data, Ingredion boasts a market capitalization of $8.74 billion and a P/E ratio of 13.46, suggesting the stock may be undervalued relative to its earnings.
InvestingPro Tips highlight Ingredion's strong financial position and shareholder-friendly policies. The company has maintained dividend payments for 27 consecutive years and has raised its dividend for 13 consecutive years. This commitment to returning value to shareholders is further underscored by the current dividend yield of 2.38%.
Moreover, Ingredion's stock has shown impressive performance, with a one-year price total return of 50.56% and a strong return over the last three months. The stock is currently trading near its 52-week high, with the price at 97.12% of its 52-week peak.
These metrics paint a picture of a company with solid fundamentals and positive momentum, which may provide context for executive stock transactions. Investors seeking a deeper understanding of Ingredion's financial health and growth prospects can access additional InvestingPro Tips, with 12 more tips available on the platform.
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