ST. LOUIS – Core & Main, Inc. (NYSE:CNM), a leading distributor of water, sewer, storm drain and fire protection products in the United States, reported a significant transaction by company director Dennis G. Gipson. According to the latest filings, Gipson sold 25,000 shares of Core & Main's Class A Common Stock at an average price of $53.0823, totaling over $1.3 million.
The transaction took place on July 16, 2024, and was made public on July 18, 2024, through an SEC filing. The sale occurred under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Investors should note that the price range for the shares sold by Gipson was between $53.0000 and $53.3700 per share. This level of detail provides transparency and assurance regarding the execution prices of the transactions.
In addition to the sale, the filing disclosed that on the same day, Gipson was involved in transactions that resulted in the redemption of 24,857 vested Units for the same number of Class A Common Stock, which were then immediately sold. This transaction was conducted in accordance with the terms of the Fourth Amended and Restated LLC Agreement of Core & Main Management Feeder, LLC.
Furthermore, Gipson's indirect holdings through a Trust were adjusted, with 24,857 shares of Class B Common Stock and limited partnership interests exchanged for shares of Class A Common Stock on a one-for-one basis, as per the terms of an exchange agreement.
After these transactions, Gipson's direct holdings in Core & Main Class A Common Stock were reduced to zero. However, the filing also mentioned that Gipson indirectly holds 11,769 restricted stock units (RSUs), which are part of his director compensation. Of these RSUs, 9,320 have vested, with the remainder set to vest at the next annual meeting of shareholders in 2025, provided Gipson continues his service as a director.
Core & Main, Inc. has not issued any official statement regarding these transactions at the time of reporting. The transactions are part of the normal course of business for corporate executives and are disclosed in compliance with SEC regulations.
Investors and market watchers often monitor insider sales as they may provide insights into an executive's view of the company's stock value and future performance. However, such transactions do not necessarily indicate a lack of confidence in the company by the insider, as they may be related to personal financial management or estate planning.
Core & Main continues to operate as a major player in the distribution of infrastructure and fire protection products, serving municipalities, private water companies, and contractors across the country.
In other recent news, Core & Main has made significant strides in its operations. The company has expanded into the Canadian market with the acquisition of HM Pipe Products, marking a major milestone in its growth trajectory. Additionally, Core & Main reported an 11% increase in net sales in the first quarter of fiscal year 2024, reaching a record $1.74 billion.
In a show of confidence in its financial health, Core & Main has also announced a share repurchase program, authorizing a buyback of up to $500 million of its Class A common stock. On the analyst front, Truist Securities revised its price target for Core & Main to $50.00, maintaining a Hold rating, while RBC Capital Markets maintained its Outperform rating with a steady price target of $60.00.
In other company developments, Core & Main shareholders recently voted on several key proposals, including the election of directors and approval of executive compensation. These are the latest developments for Core & Main, a company that continues to navigate a competitive market while maintaining its growth trajectory.
InvestingPro Insights
As Core & Main, Inc. (NYSE:CNM) navigates the dynamic market landscape, recent data from InvestingPro sheds light on the company's financial health and market position. With a market capitalization of $10.42 billion and a P/E ratio standing at 24.24, Core & Main is trading at a valuation that suggests investor confidence in its earnings potential. However, the company's P/E ratio has adjusted upwards to 26.02 over the last twelve months as of Q1 2025, indicating a higher price relative to earnings.
On the operational front, Core & Main has demonstrated a solid financial performance with a revenue growth of 3.65% over the last twelve months as of Q1 2025. This is complemented by a robust gross profit margin of 26.89%, reflecting the company's ability to maintain profitability in its operations. Moreover, the company's liquid assets have been reported to exceed its short-term obligations, which is a positive indicator of its financial stability and ability to meet immediate liabilities.
Investors considering Core & Main's stock should be aware of specific InvestingPro Tips that could influence their decision-making. Management's aggressive share buyback strategy signals a bullish stance on the company's value, while analysts have revised their earnings downwards for the upcoming period, which could suggest caution. Additionally, Core & Main is noted to be operating with a moderate level of debt, providing a balance between leveraging opportunities for growth and maintaining financial prudence.
For those looking to delve deeper into Core & Main's prospects, InvestingPro offers additional tips and insights. There are a total of 11 InvestingPro Tips available, which include observations on the company's profitability, return on assets, and analysts' predictions for the year. For a comprehensive analysis and to benefit from the full suite of insights, interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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