In a recent transaction, Ajay Agrawal, Senior VP of Strategy & Services at Carrier Global Corp (NYSE:CARR), sold a significant number of shares in the company. The executive offloaded 62,382 shares at prices ranging from $64.30 to $64.705, averaging $64.55 per share, resulting in a total value of approximately $4,026,758.
The sale took place on August 8, 2024, and was disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. Alongside this sale, Agrawal also exercised options, acquiring 93,320 shares of Carrier Global Corp at a price of $21.43 each, amounting to a total of $1,999,847. This transaction was treated as an exempt acquisition under Section 16 of the Securities Exchange Act of 1934.
Furthermore, Agrawal disposed of 30,938 shares as part of a transaction to cover tax liabilities, each at $64.64, totaling $1,999,832. This disposal was related to the settlement of Stock Appreciation Rights (SARs) in shares, as per the terms of the award.
Following these transactions, Agrawal's direct ownership in the company has been adjusted to 103,066 shares of common stock. The recent filings provide a detailed look into the executive's trading activities, offering investors insight into the stock dealings within Carrier Global Corp.
Investors and market watchers often pay close attention to insider transactions as they can provide valuable signals about the company's performance and executives' confidence in the business. Carrier Global Corp, known for its air conditioning and heating equipment, remains a closely monitored entity in the industrial sector.
In other recent news, Carrier Global Corporation has been experiencing significant developments. The company's second-quarter adjusted earnings per share (EPS) were reported at $0.87, surpassing the consensus estimate of $0.85. This figure signifies a 10% year-over-year increase. Additionally, Carrier reported a 35% surge in free cash flow to $550 million. The company also announced plans for a multi-billion dollar share buyback and projected full-year sales to reach approximately $25.5 billion, with an adjusted EPS of $2.80 to $2.90.
BofA Securities recently upgraded Carrier Global from Underperform to Neutral and increased the price target to $72, indicating a more favorable outlook for the company. This reassessment follows the company's robust North American HVAC demand, which helped offset disappointing results from Viessmann. Similarly, Baird adjusted its price target for Carrier Global to $74, maintaining an Outperform rating on the stock.
Despite the underperformance of Viessmann, a key part of Carrier's business, the company remains committed to strategic moves, including portfolio reconfiguration and aggressive capital allocation. These recent developments also include a collaboration with Viessmann Climate Solutions to leverage growth opportunities and synergies. With a focus on becoming a global leader in intelligent climate and energy solutions, Carrier's investments in connectivity, AI, and sustainable solutions remain central to the company's strategy.
InvestingPro Insights
Carrier Global Corp's (NYSE:CARR) recent insider transactions coincide with a backdrop of financial metrics that can help investors gauge the company's market position. As the Senior VP of Strategy & Services divests shares, it's noteworthy that Carrier Global has been consistently rewarding its shareholders, having raised its dividend for four consecutive years, an indicator of the company's commitment to returning value to its owners. Moreover, the company stands as a prominent player in the Building Products industry, which may influence its strategic decisions and market performance.
From a valuation standpoint, Carrier Global is trading at a P/E ratio of 16.61, which could be considered attractive relative to its near-term earnings growth potential. This is further substantiated by a PEG ratio of 0.33 for the last twelve months as of Q2 2024, suggesting that the stock may be undervalued based on its growth rate. Additionally, with a market capitalization of $58.05 billion and a revenue growth of 8.63% over the last twelve months as of Q2 2024, Carrier Global appears to be on a steady growth trajectory.
While Carrier Global operates with a moderate level of debt, investors should be aware that it is trading at high valuation multiples in terms of EBIT, EBITDA, and Price/Book, with respective multiples of 50.38, 0.33, and 4.22 for the last twelve months as of Q2 2024. These high multiples could suggest that the market has high expectations for the company's future performance.
For those interested in further insights and metrics, InvestingPro offers additional tips to help investors make more informed decisions. Currently, there are 11 more InvestingPro Tips available for Carrier Global Corp, which can be accessed at https://www.investing.com/pro/CARR.
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