Michael W. Reville, the General Counsel and Secretary of National Fuel Gas Co (NYSE:NFG), has sold a total of 6,357 shares of company stock, according to the latest SEC filings. The transaction, which took place on June 21, 2024, was executed at a weighted average price of $54.829 per share, resulting in a total value of $348,547.
The reported sales were carried out in multiple transactions with prices ranging from $54.79 to $54.895. This price range indicates that Reville took advantage of a relatively stable stock value to execute these sales. Following the transaction, Reville's direct holdings in the company decreased to 9,903 shares of common stock.
Additionally, the SEC filing revealed indirect holdings of 13,840 shares in the form of units within the company's 401(k) trust, which is a mix of National Fuel Gas Co common stock and cash reserves. The footnote attached to this information clarifies that the reported number represents the dollar value of Reville's balance in the NFG stock fund as of the day before the reported transactions, based on the plan administrator's report and the closing price of NFG common stock on that date.
Investors often keep a close eye on insider transactions such as these for insights into executive sentiment about the company's future performance. While the reasons behind Reville's stock sale are not detailed in the report, the transaction provides a snapshot of the trading activity by a key executive at National Fuel Gas Co.
In other recent news, National Fuel Gas Company (NYSE:NFG) announced a 4% increase in its quarterly dividend, marking the 54th consecutive year of dividend growth. The company also reported robust growth in its second quarter, with adjusted operating results of $1.79 per share, a 16% increase from the previous year. This growth was driven mainly by the company's regulated businesses, which saw a 36% rise in earnings per share, and a 10% increase in production from Seneca Resources and the gathering segment's throughput.
National Fuel has initiated a $200 million share buyback program and continues to invest in modernization and expansion projects. The company is expanding its Tioga gathering system and expects significant near-term growth in its regulated utility and pipeline businesses due to rate increases and ongoing investments.
Despite some bearish aspects such as weather impacts and lower gas prices, the company's throughput increased by 15% year over year, indicating promising prospects. National Fuel has expressed continued interest in mergers and acquisitions to add regulated assets to their portfolio. These are the recent developments in the company's operations and strategy.
InvestingPro Insights
Amidst the insider trading activity at National Fuel Gas Co (NYSE:NFG), investors looking for additional context may consider several key metrics and insights from InvestingPro. As of the latest data, National Fuel Gas boasts a market capitalization of $5.16 billion, reflecting the scale and size of the company within its sector.
An aspect that stands out for National Fuel Gas is its history of consistent dividend payments, which is a significant point of interest for income-focused investors. The company has not only maintained but also raised its dividend for 53 consecutive years, showcasing a strong commitment to returning value to shareholders. This remarkable track record is further highlighted by a current dividend yield of 3.68%, which is quite attractive in the current market environment.
From a valuation standpoint, National Fuel Gas is trading at an earnings multiple of 11.08, which is relatively low, suggesting that the stock may be undervalued compared to its earnings capacity. This is reinforced by the adjusted P/E ratio for the last twelve months as of Q2 2024, which stands at 10.99. Additionally, analysts have revised their earnings expectations upwards for the upcoming period, hinting at potential strength in the company's financial performance ahead.
Investors contemplating whether to follow in the footsteps of General Counsel Michael W. Reville's recent stock sale or to take a different investment approach can find further insights with InvestingPro. There are currently 6 additional InvestingPro Tips available for National Fuel Gas Co, which can provide deeper analysis and guidance. For those interested in accessing these exclusive tips, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/NFG.
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