HOUSTON, TX – Carriage Services Inc (NYSE:CSV) Director Charles Fargason has recently increased his stake in the company through the purchase of additional shares, according to the latest SEC filings. The transactions occurred over two consecutive days, reflecting a strong vote of confidence from the director in the company’s future.
On the first day, Fargason acquired 2,000 shares at a price of $28.40 each, followed by another 2,000 shares the next day at a slightly lower price of $28.05. The total investment for these transactions amounted to $112,900, with the price per share ranging between $28.05 and $28.40.
These purchases have raised Fargason’s total ownership in Carriage Services to 20,005 shares. The company, known for its personal services in the death care industry, has seen varied market performance, but these insider transactions often provide investors with insights into the executives' perspectives on the company’s valuation and prospects.
Investors and market watchers frequently monitor such insider buying activities as they can indicate the leadership’s belief in the company's potential for growth or undervaluation. However, it is also important to consider the broader market trends and company performance when interpreting these transactions.
Carriage Services Inc, headquartered in Houston, Texas, operates in the personal services sector and is listed under the Standard Industrial Classification code 7200. The company's stock, traded under the ticker CSV, may see varied investor interest following these insider transactions.
In other recent news, Carriage Services reported a strong first quarter in 2024, with total revenues reaching $103.5 million, an 8.4% increase year-over-year. This milestone was driven by the remarkable performance of the preneed cemetery team and the successful integration of the recently acquired company, Greenland. In addition, Carriage Services managed to reduce its debt by $25 million.
The company also confirmed its full-year guidance for 2024, which includes revenue, EBITDA, earnings per share, and free cash flow projections. Despite a volume decline in March, strategic pricing and cost efficiency initiatives, along with potential real estate monetization, are anticipated to contribute to continued growth and shareholder value.
Funeral home operating revenue rose to $66.6 million, while cemetery operating revenue saw a 29.4% increase to $27.6 million. Adjusted consolidated EBITDA also saw a significant rise of 20.9% to $33.6 million. These recent developments underscore Carriage Services' commitment to its strategic plan and 5-year objectives, aimed at driving sustained growth and enhancing shareholder value.
InvestingPro Insights
Director Charles Fargason’s recent acquisition of additional shares in Carriage Services Inc (NYSE:CSV) signals his confidence in the company's trajectory. To provide a clearer picture of what this might mean for investors, let's delve into some key metrics and insights from InvestingPro.
Firstly, Carriage Services boasts a high shareholder yield, which is a positive sign for investors looking for returns on their investment. This aligns with the company's impressive track record of maintaining dividend payments for 14 consecutive years, underscoring its commitment to shareholder value. With a dividend yield of 1.61% as of the most recent data, and considering the stability of dividend payments, investors might find Carriage Services an attractive option for income-focused portfolios.
The company's financial health is also worth noting, with a market cap of $423.88 million and a price-to-earnings (P/E) ratio of 13.43, which has slightly adjusted to 13.15 over the last twelve months as of Q1 2024. While the P/E ratio suggests a reasonable valuation relative to earnings, the company's short term obligations exceeding its liquid assets could be a point of caution for investors considering the liquidity position.
InvestingPro Tips further highlight that analysts predict Carriage Services will be profitable this year, which is consistent with the company being profitable over the last twelve months. These insights could be particularly relevant for investors considering the director's recent share acquisition as a sign of future growth.
To explore additional InvestingPro Tips and gain deeper insights into Carriage Services Inc, investors are encouraged to visit: https://www.investing.com/pro/CSV. There are 2 additional InvestingPro Tips available that could further inform investment decisions. And for those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off.
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