In a recent transaction on July 31, Pamela McCormack, President of Ladder Capital Corp (NYSE:LADR), sold 100,000 shares of the company’s Class A Common Stock for a total value of approximately $1.2 million. The sale was executed at a volume-weighted average price of $12.17 per share, with individual sale prices ranging from $12.15 to $12.19.
This transaction has adjusted McCormack's direct and indirect holdings in the company. According to the filing, the shares sold were held by trusts, specifically The Pamela L. McCormack Revocable Living Trust and The Brian J. McCormack Revocable Living Trust. After the sale, McCormack's direct and indirect ownership in Ladder Capital stands at 598,863 shares held by the trusts.
The filing also noted holdings in other entities. McCormack disclaims beneficial ownership of 253,600 shares held by McCormack Investors LLC, stating that this report should not be interpreted as an admission of beneficial ownership of these shares for Section 16 or any other purposes.
Investors keeping track of executive stock transactions at Ladder Capital Corp can note that the reported price represents the volume-weighted average of the shares sold during the transaction period. The company has stated that full information regarding the number of shares sold at each price is available upon request to the SEC, the issuer, or its stockholders.
The transaction was signed off by Michelle Wallach, acting as Attorney-in-Fact for Pamela McCormack, and was filed with the SEC on August 2, 2024.
In other recent news, Ladder Capital Corp reported its second quarter financial results for 2024, posting distributable earnings of $40.4 million, or $0.31 per share, and a return on equity of 10.2%. The company successfully priced a $500 million unsecured corporate bond offering, leading to positive ratings from all three rating agencies. This places Ladder Capital on the cusp of achieving an investment-grade rating.
Ladder Capital also highlighted its strong liquidity position, with $1.9 billion available, including $1.6 billion in cash and cash equivalents. The company's loan portfolio stands at $2.5 billion, with $255 million in loan pay downs during the quarter. The firm has declared a dividend of $0.23 per share.
In terms of future developments, Ladder Capital aims to become an investment-grade company and plans to increase its asset base and grow earnings. Despite facing a competitive market and challenges in demand, the company remains optimistic about achieving an investment-grade rating and the recovery of the commercial real estate market. These are recent developments that investors should keep an eye on.
InvestingPro Insights
Following the recent stock transaction by President Pamela McCormack, investors in Ladder Capital Corp (NYSE:LADR) may be seeking additional context to understand the company's financial health and market performance. According to InvestingPro data, Ladder Capital Corp has a market capitalization of approximately $1.51 billion and a Price/Earnings (P/E) ratio of 14.83. These metrics suggest a relatively moderate valuation in the current market context. Additionally, the company's Price to Book (P/B) ratio as of the last twelve months ending Q2 2024 is 0.99, indicating that the stock is trading close to its book value.
One of the notable InvestingPro Tips for Ladder Capital Corp is the company's commitment to returning value to shareholders through dividends. LADR has maintained dividend payments for 10 consecutive years, which, combined with a dividend yield of 7.75% as of mid-2024, underscores its appeal to income-focused investors. Moreover, despite a revenue decline of 17.21% over the last twelve months as of Q2 2024, analysts forecast profitability for the company this year. This projection is supported by the company's positive gross profit margin of 75.44% in the same period, reflecting efficient cost management.
For investors considering Ladder Capital Corp's stock volatility, it is important to note that the price movements are quite volatile. This characteristic may appeal to certain traders looking for short-term opportunities but could also signal a need for caution among long-term investors who prioritize stability. To gain a deeper understanding of LADR's stock performance and financial metrics, investors can access additional insights on InvestingPro, which currently lists 6 more InvestingPro Tips for Ladder Capital Corp at https://www.investing.com/pro/LADR.
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