Deluxe Corp (NYSE:DLX) President and CEO Barry C. McCarthy recently purchased shares of the company's stock, according to a new SEC filing. On June 10, McCarthy acquired a total of 2,440 shares of Deluxe Corp's common stock at an average price of $21.63 per share, amounting to an investment of approximately $52,777.
The transaction was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a trading schedule in advance to avoid accusations of insider trading. The reported purchase price represents the weighted average price of the shares, which were bought in a range of prices from $21.36 to $21.72. McCarthy now owns a total of 175,850 shares in the company directly following this transaction.
Deluxe Corp, known for its services in the check printing industry, has a SIC code of 2780, which includes companies that operate in blank books, looseleaf binders, bookbinding, and related work. The company has been a staple in the financial services industry, providing various products and services beyond its traditional check printing business.
Investors often monitor insider transactions as they can provide insights into the company's performance and management's confidence in the business's prospects. McCarthy's recent stock purchase could be seen as a sign of his belief in the company's value and future prospects.
This SEC Form 4 filing provides a snapshot of a key insider's trading activity, offering investors a glimpse into the actions taken by those who are typically most knowledgeable about the company's inner workings and potential.
In other recent news, Deluxe Corp's first quarter of 2024 has been marked by strong earnings and an upward revision in cash flow guidance. The company's performance, as reported in its earnings call, indicated significant growth in key areas, despite a slight dip in total revenue. The firm's North Star initiative, aimed at improving margins and reducing costs, has been fruitful, with the Payments and Data segment growing by over 8%.
TD Cowen, following these developments, has raised the stock price target for Deluxe Corp from $33.00 to $35.00, maintaining a Buy rating. The adjustment reflects an upbeat outlook based on the company's robust first-quarter earnings. Deluxe's management has projected an optimistic forecast, which TD Cowen has incorporated into its updated estimates.
The company's revenue for 2024 is projected to range between $2.14 billion and $2.18 billion, with adjusted EBITDA expected to be between $400 million and $420 million. Deluxe's free cash flow guidance has been increased to $80 million to $100 million. These recent developments suggest that Deluxe Corp is likely to continue its positive trajectory throughout the remainder of 2024.
InvestingPro Insights
Deluxe Corp (NYSE:DLX) has shown resilience and potential for growth, as reflected in recent insider trading activity and financial metrics. With President and CEO Barry C. McCarthy's purchase of shares, investor confidence may be bolstered by the company's strong fundamentals and positive outlook.
InvestingPro Data reveals a solid financial foundation for Deluxe Corp. The company boasts an impressive gross profit margin of 53.47% for the last twelve months as of Q1 2024, indicating efficient operations and a strong competitive position in its industry. Additionally, Deluxe Corp's commitment to shareholder value is evident with a significant dividend yield of 5.54% as of mid-2024, which is particularly attractive for income-seeking investors.
InvestingPro Tips highlight several key strengths of Deluxe Corp. Notably, the company has maintained dividend payments for an impressive 54 consecutive years, demonstrating a reliable return to shareholders. Furthermore, analysts predict that Deluxe Corp will be profitable this year, with net income expected to grow. These factors, combined with a high shareholder yield, position Deluxe Corp as a potentially valuable addition to an investment portfolio.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers a range of tips to guide investment decisions. There are 6 more InvestingPro Tips available for Deluxe Corp at https://www.investing.com/pro/DLX. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to valuable information that could inform investment strategies.
Deluxe Corp's fundamentals, combined with proactive leadership actions, paint a picture of a company that is not only enduring but also poised for future growth. As the financial services industry continues to evolve, Deluxe Corp's strategic positioning and solid financial metrics could make it a company to watch in the coming quarters.
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