Curtiss Wright Corp (NYSE:CW) reported a recent transaction by Chair and CEO Lynn M Bamford, who acquired company shares valued at approximately $10,235. The purchase was executed on July 3, 2024, at a price of $232.62 per share. Following this transaction, Bamford now directly owns a total of 35,817 shares of Curtiss Wright.
The shares were bought pursuant to the company's Employee Stock Purchase Plan, which offers a 15% discount on the average selling price of the company's common stock. This price reflects the discounted rate based on the average selling price on June 30, 2024, the last day of the offering period.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into an executive's confidence in the company's future performance. The recent acquisition by Bamford might be seen as a positive signal to the market, indicating potential growth or undervaluation of Curtiss Wright's stock.
Curtiss Wright, headquartered in Davidson, North Carolina, operates within the industrial and commercial machinery and equipment sector. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol CW.
In other recent news, Curtiss-Wright (NYSE:CW) Corporation has announced its agreement to purchase Ultra Energy from Ultra Electronics for $200 million, a move aimed at enhancing its offerings in the commercial nuclear and defense industries. Ultra Energy, recognized for its design and manufacture of safety systems and sensors for nuclear power plants, reported sales of about $65 million in 2023. This acquisition is expected to be beneficial to Curtiss-Wright's adjusted diluted earnings per share in the first year and provide a strong free cash flow conversion rate exceeding 100%.
Additionally, Curtiss-Wright has been awarded a $16 million contract to supply the U.S. Air Force with advanced communications modules and cybersecurity integration. The contract is expected to grow to a value exceeding $60 million.
On the financial front, Truist Securities and Wolfe Research have revised the price target for Curtiss-Wright shares, raising it to $270 and $320, respectively. The adjustments reflect the company's new financial goals, which include an organic revenue compound annual growth rate (CAGR) of over 5%, operating margin expansion that could reach approximately 19%, an earnings per share (EPS) CAGR of over 10%, and free cash flow (FCF) conversion exceeding 105%. These are indeed recent developments in the company's trajectory.
InvestingPro Insights
As investors digest the news of Chair and CEO Lynn M Bamford's recent stock purchase, a glance at the real-time data from InvestingPro provides additional context to Curtiss Wright Corp's (NYSE:CW) financial health and market performance. With a robust market capitalization of $10.3 billion and a Price/Earnings (P/E) ratio standing at 27.55, the company shows significant market value and investor interest. The P/E ratio, which has remained stable at 27.58 over the last twelve months as of Q1 2024, suggests that the stock is trading at a higher multiple relative to near-term earnings growth, as per an InvestingPro Tip.
Another key metric for shareholders is the company's consistent history of dividend payments, with Curtiss Wright having raised its dividend for 7 consecutive years and maintained payments for an impressive 51 years. This track record underscores the company's commitment to returning value to its shareholders. Additionally, the company's gross profit margin stands healthy at 37.56%, indicating efficient operations and strong profitability over the last twelve months as of Q1 2024.
For those looking to delve deeper into Curtiss Wright's performance and future outlook, there are additional InvestingPro Tips available. For instance, while the company is trading at a high Price/Book multiple of 4.34, indicating a premium market valuation, it is also important to note that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. Moreover, the company has experienced a large price uptick of 25.24% over the last six months, reflecting a strong market sentiment.
To explore further insights and gain access to exclusive financial analysis, consider subscribing to InvestingPro. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 13 additional InvestingPro Tips available for Curtiss Wright, which can provide a more comprehensive understanding of the company's financial landscape and market potential.
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