LEXINGTON, Ky.—Charles M. Sonsteby, a director at Valvoline Inc . (NYSE:VVV), recently acquired 10,000 shares of the company's common stock. The shares were purchased at a price of $39.50 each, amounting to a total transaction value of $395,000. Following this acquisition, Sonsteby's total holdings in Valvoline increased to 26,437 shares, which includes 4,937 shares of restricted stock. This transaction was disclosed in a filing with the Securities and Exchange Commission dated November 25, 2024.
In other recent news, Valvoline has been in the spotlight following several analyst adjustments to its stock outlook. Mizuho (NYSE:MFG), Baird, and RBC Capital all maintained an Outperform rating on Valvoline, but reduced their price targets, following the company's weaker-than-expected financial guidance for FY25E. Piper Sandler maintained its Overweight rating and a steady price target of $44.00, while Citi kept a Neutral stance but lowered its price target to $39.00.
Valvoline exceeded fourth-quarter earnings expectations with adjusted earnings per share of $0.46 and a 12% revenue increase to $435.5 million. The company reported sales of $1.62 billion for fiscal year 2024. For fiscal 2025, Valvoline forecasts earnings per share between $1.57 and $1.67, and revenue between $1.67 billion to $1.73 billion.
The company added 158 new stores in fiscal 2024 and plans to open 160 to 185 new stores in the upcoming fiscal year. Valvoline's senior management also indicated an upcoming revision to the long-term comparable sales algorithm, which is likely to be adjusted to a range of +5-7%. These are among the recent developments for Valvoline.
InvestingPro Insights
Charles M. Sonsteby's recent purchase of Valvoline Inc. (NYSE:VVV) shares aligns with several positive indicators from InvestingPro data. The company's revenue growth of 12.16% over the last twelve months and 11.67% in the most recent quarter demonstrates strong market performance. This growth is complemented by a robust EBITDA growth of 26.9%, suggesting improved operational efficiency.
InvestingPro Tips highlight that Valvoline has been profitable over the last twelve months, with analysts predicting continued profitability this year. This positive outlook is reflected in the company's solid operating income margin of 21.96%.
However, investors should note that Valvoline is trading at a high Price / Book multiple of 26.88, which may indicate the stock is relatively expensive compared to its book value. This valuation metric aligns with another InvestingPro Tip suggesting that the company is trading at a high revenue valuation multiple.
For those interested in a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Valvoline's financial health and market position. These additional tips could be particularly valuable for investors looking to make informed decisions based on a broader range of financial metrics and expert analysis.
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