Jose-Miguel Tejada, the Senior Vice President and Chief Accounting Officer of World Kinect Corp (NYSE:WKC), has sold 2,500 shares of the company's common stock. The shares were sold at a weighted average price of $28.0754, totaling approximately $70,188. Following this transaction, Tejada holds 30,858 shares of World Kinect. The sale was executed on November 18, 2024, according to a recent SEC filing.
In other recent news, World Kinect Corporation reported growth in its Aviation and Marine segments, despite the overall decline in gross profit and total volume. The company's third-quarter financial performance showed a reduction in operating and interest expenses, along with a significant share repurchase program. The Aviation segment reported double-digit operating margin growth, and the Marine segment's gross profit increased by 8% year-over-year. Conversely, the Land segment witnessed a 16% decline in gross profit from the previous year.
The company's total volume reached $4.4 billion, with a gross profit of $268 million, marking a 5% decrease year-over-year. However, World Kinect Corporation anticipates a Q4 gross profit between $253 million and $260 million. Additionally, the company repurchased $28 million in shares during the quarter, increasing the total share repurchase authorization by $200 million.
These recent developments indicate World Kinect Corporation's resilience amid market challenges, with a focus on enhancing operating margins and profitability through strategic mergers and acquisitions. The company's management anticipates improved cash flow in Q4 and expects to meet long-term financial targets by 2025.
InvestingPro Insights
As Jose-Miguel Tejada reduces his stake in World Kinect Corp (NYSE:WKC), investors might be curious about the company's financial health and market position. According to InvestingPro data, World Kinect has a market capitalization of $1.62 billion and is trading at a P/E ratio of 12.41, which suggests a relatively low valuation compared to its earnings.
One of the InvestingPro Tips highlights that World Kinect is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.43. This could indicate that the stock is potentially undervalued, considering its growth prospects. Additionally, the company has maintained dividend payments for 31 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield stands at 2.45%, which may be attractive to income-focused investors.
However, it's worth noting that World Kinect suffers from weak gross profit margins, with the latest data showing a gross profit margin of just 2.25% for the last twelve months. This low margin could be a concern for investors looking at the company's profitability.
For those interested in a more comprehensive analysis, InvestingPro offers 9 additional tips for World Kinect Corp, providing a deeper insight into the company's financial situation and market position.
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