In a recent transaction, Bruce Hazelgrove III, the Executive Vice President and Chief Administrative Officer of NewMarket Corp (NYSE:NEU), sold a total of 1,270 shares of the company's common stock, netting over $690,000. The sales were executed on August 9, 2024, with prices ranging from $544.28 to $545.36 per share.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission dated August 13, 2024. According to the filing, Hazelgrove sold 1,237 shares at a weighted average price of $544.28, and another 33 shares at a weighted average price of $545.36. The total value of the shares sold by Hazelgrove amounted to approximately $691,271.
The sales have adjusted Hazelgrove's holdings in NewMarket Corp, leaving him with 358 shares of common stock directly owned after the transactions. Additionally, the filing revealed indirect ownership through the NewMarket Savings Plan and shares held by his wife, which total 21,469.98 shares.
NewMarket Corporation, based in Richmond, Virginia, specializes in the industrial organic chemicals sector. The company has not made any official statements regarding the stock sale by one of its top executives. Investors and market watchers often pay close attention to insider transactions as they can provide insights into an executive's view of the company's stock value and future performance.
In other recent news, NewMarket Corporation announced a $2.50 per share quarterly dividend. The company has also reported a rise in net income to $112 million for the second quarter of 2024, up from $100 million the previous year. Earnings per share also increased to $11.63, compared to $10.36 in the same period last year.
The petroleum additives segment of NewMarket Corporation saw a slight increase in shipments and a rise in profit, despite a drop in selling prices. This was accompanied by the successful acquisition of AMPAC, contributing to the sales of the specialty materials segment and shifting it from a loss to a profit.
NewMarket Corporation also reported strong cash flows, a significant reduction in debt, and the maintenance of a net debt to EBITDA ratio within the targeted range. The company's capital expenditures for 2024 are projected to be between $50 million and $70 million.
In terms of future expectations, NewMarket anticipates continued strength in its petroleum additives segment and a successful integration of AMPAC. These are the recent developments for NewMarket Corporation.
InvestingPro Insights
Amid the insider trading activity at NewMarket Corp (NYSE:NEU), investors may find additional context in the company's financial metrics and market performance. NewMarket Corp, with a market capitalization of $5.24 billion, presents a relatively stable investment profile, as indicated by its low price volatility. The company's P/E ratio stands at 12.75, which, when paired with a near-term earnings growth, suggests that the stock is trading at a low P/E ratio relative to its earnings growth potential.
Investors looking for income-generating stocks might be encouraged by NewMarket Corp's consistent dividend payments, having raised its dividend for 5 consecutive years and maintained payments for 19 consecutive years. The current dividend yield is 1.84%, with a recent growth of 11.11% in the dividend, reflecting the company's commitment to shareholder returns. Additionally, the company's financial health is underpinned by a strong free cash flow yield, which supports the sustainability of these dividend payments.
Analyzing the company's performance over the last twelve months as of Q2 2024, NewMarket Corp has reported a revenue of $2.72 billion, though with a slight decline in revenue growth by -1.77%. However, the company's gross profit margin remains robust at 29.94%, signaling effective cost management. For investors seeking more in-depth analysis, there are over 9 additional InvestingPro Tips available for NewMarket Corp, which can be found on the dedicated InvestingPro page for the company at https://www.investing.com/pro/NEU.
With an upcoming earnings date on October 21, 2024, and analyst targets suggesting a fair value of $651, compared to the InvestingPro fair value estimate of $575.21, NewMarket Corp's stock may be of particular interest to value-oriented investors. The recent price close at $543.79 and its position at 84.13% of its 52-week high also provide a vantage point for assessing potential entry points for long-term investors.
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