David S. Schulz, Executive Vice President and Chief Financial Officer of WESCO International Inc. (NYSE:WCC), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Schulz sold 14,938 shares of WESCO common stock on November 12, 2024, at prices ranging from $206.54 to $207.11 per share, totaling approximately $3.1 million.
The transactions are part of a series of moves by Schulz, who also exercised stock appreciation rights on November 8, 2024, acquiring 38,045 shares at a price of $62.8 per share. Following these transactions, Schulz's direct ownership in WESCO decreased, with a remaining total of 104,470 shares of common stock.
WESCO International, a leading provider of electrical, industrial, and communications maintenance, repair, and operating products, continues to be a key player in the wholesale distribution sector. Investors may find these insider transactions noteworthy as they assess the company's future prospects and executive confidence.
In other recent news, WESCO International has been making strides in its financial performance and strategic growth. The firm's Data Communications Supply Solutions (DCSS) segment reported robust sales and a significant sequential operating leverage, leading to an increased stock target by Oppenheimer. This growth in the DCSS segment, which accounts for about a quarter of the company's Cable and Security Solutions segment, has been broad-based across various markets.
WESCO has also announced an agreement to acquire Ascent, a data center facility management services provider, for $185 million. This acquisition is aligned with WESCO's strategic focus on data center expansion and strategic mergers and acquisitions.
During its 2024 Third Quarter Earnings Call, WESCO reported a slight uptick in sales over the previous quarter, largely due to a 10% increase in its data center segment. The company reaffirmed its full-year 2024 outlook, anticipating significant free cash flow generation over the next three years. Despite some challenges in the utility and broadband sectors, WESCO secured large contract awards ranging from $50 million to over $2 billion. These are the recent developments that investors should be aware of.
InvestingPro Insights
Following David S. Schulz's recent stock transactions, it's worth examining WESCO International's current financial position and market performance. According to InvestingPro data, WESCO boasts a market capitalization of $10.14 billion, with a price-to-earnings ratio of 16.32, indicating a relatively moderate valuation compared to industry peers.
The company's financial health appears robust, with InvestingPro Tips highlighting that WESCO's liquid assets exceed its short-term obligations. This strong liquidity position suggests the company is well-equipped to handle near-term financial commitments, which may provide some context for the CFO's decision to sell shares.
Despite Schulz's sale, WESCO has demonstrated impressive market performance. InvestingPro data shows a one-year price total return of 46.65%, significantly outperforming broader market indices. This aligns with an InvestingPro Tip noting WESCO's strong returns over the last month, three months, and five years, potentially indicating sustained investor confidence in the company's trajectory.
It's worth noting that WESCO's revenue for the last twelve months stood at $21.79 billion, with a gross profit margin of 21.66%. While these figures demonstrate the company's substantial market presence, investors should be aware that 8 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip.
For those seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for WESCO International, providing deeper insights into the company's financial health and market position.
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