Joseph B. Hayek, Executive Vice President and Chief Financial Officer of Worthington Enterprises, Inc. (NYSE:WOR), recently acquired 2,500 common shares of the company. The shares were purchased at a price of $40.21 each, totaling approximately $100,525. Following this transaction, Hayek holds 168,875 shares directly. Additionally, he maintains indirect ownership through IRAs managed by Merrill-Lynch and Vanguard, with respective holdings of 2,000 and 1,643 shares. The Vanguard IRA holdings include shares acquired through a dividend reinvestment plan as of September 30, 2024.
In other recent news, Worthington Enterprises has undergone significant changes, including a CEO transition and a disappointing performance in the first quarter of fiscal year 2025. The company's consolidated net sales fell by 17.5% to $257 million, with adjusted EBITDA and earnings per share dropping to $48 million and $0.50, respectively. Amid these developments, Canaccord Genuity maintained its Hold rating on Worthington shares, with a steady price target of $46.00. The firm had previously expressed skepticism about Worthington's ambitious long-term sales goals, which they view as overly dependent on mergers and acquisitions. However, they also acknowledged the company's strong balance sheet and financial stability. These recent developments come as Worthington continues to adjust to its new structure following the separation of its steel business and the formation of a joint venture in sustainable energy solutions.
InvestingPro Insights
Joseph B. Hayek's recent purchase of Worthington Enterprises shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has experienced a significant decline over the past six months, with a -29.88% total return, potentially presenting a buying opportunity for insiders who believe in the company's long-term prospects.
Despite the recent stock performance, Worthington Enterprises boasts a strong dividend history. An InvestingPro Tip reveals that the company has maintained dividend payments for an impressive 52 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by the current dividend yield of 1.69%, which may be attractive to income-focused investors.
The company's financial health appears solid, with InvestingPro Data showing that liquid assets exceed short-term obligations, and the company operates with a moderate level of debt. This financial stability could be a factor in Hayek's decision to increase his stake.
However, investors should note that Worthington Enterprises is trading at a high P/E ratio of 51.35, which may indicate that the stock is currently overvalued compared to its earnings. This valuation metric should be considered alongside the company's growth prospects and market position.
For a more comprehensive analysis, InvestingPro offers 14 additional tips for Worthington Enterprises, providing deeper insights into the company's financial health and market position.
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