Carolyn Monroe, the Senior Vice President of Title Insurance at Old Republic International Corp (NYSE:ORI), has recently engaged in significant transactions involving the company's shares, according to the latest SEC filings. The executive sold shares while also acquiring shares through option exercises, reflecting active trading in the company's stock.
On May 1, 2024, Monroe sold 3,377 shares of Old Republic at an average price of $30.04, resulting in total proceeds of $101,445. This sale was part of a series of transactions that also included the acquisition of shares.
In addition to the sale, Monroe exercised options to acquire 29,970 shares of common stock at a price of $24.31 per share, amounting to a total transaction value of $728,570. However, the executive also returned 26,593 shares to the company, valued at $29.86 each, to cover the exercise price and tax withholdings for the options, which amounted to $794,066. This transaction is known as a "net exercise" and is a common method for executives to manage the financial impact of option exercises.
Following these transactions, Monroe's direct holdings in Old Republic include 33,556 shares of common stock, which also accounts for 28,014 unvested Restricted Stock Awards (RSAs), as detailed in the footnotes of the filing.
These latest transactions provide a glimpse into the trading activities of Old Republic's executives and are part of the standard disclosure requirements for company insiders. Investors often monitor such trades for insights into executive confidence and company performance. Old Republic International Corp, with its headquarters in Chicago, Illinois, operates in the surety insurance industry and is known for its commitment to financial stability and service integrity.
InvestingPro Insights
Old Republic International Corp (NYSE:ORI) has shown a blend of stability and growth potential that could interest investors. With management actively buying back shares, this signals a confidence in the company's value, which is further supported by two analysts revising their earnings upwards for the upcoming period. This could indicate an optimistic outlook on the company's performance. In addition, Old Republic has been consistent with its dividend payments, maintaining them for an impressive 54 consecutive years, which may appeal to income-focused investors.
From a valuation standpoint, Old Republic is currently trading at a low P/E ratio of 11.87, which is even more attractive when considering the adjusted P/E ratio for the last twelve months as of Q1 2024 at 11.47. This valuation metric is coupled with a PEG ratio of 0.36 during the same period, suggesting that the stock is potentially undervalued relative to its near-term earnings growth. The company's price to book ratio stands at 1.3, which might be appealing to value investors seeking assets at prices close to their intrinsic value.
While the company's short-term obligations exceed its liquid assets, which could raise concerns over liquidity, the overall financial health of Old Republic appears robust, with a gross profit margin of 64.21% in the last twelve months as of Q1 2024. Moreover, the company's shares are trading near their 52-week high, reflecting a strong market sentiment.
For those looking to delve deeper into Old Republic's financials and future prospects, there are additional InvestingPro Tips available on InvestingPro. As a special offer, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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