Sterling Infrastructure, Inc. (NASDAQ:STRL) Chief Executive Officer Joseph A. Cutillo has sold a significant portion of his shares in the company, according to recent filings. The transactions, which occurred over a three-day period, involved the sale of 118,322 shares of common stock for a total value exceeding $13 million.
The sales commenced on March 25, 2024, with 40,000 shares sold at an average price of $112.5865 per share. The following day, an additional 40,000 shares were sold, this time at a slightly higher average price of $113.0468 per share. The selling spree concluded on March 27, with 38,322 shares traded at an average price of $112.8096 per share.
Investors should note that the transactions were executed in multiple trades within price ranges. On March 25, shares were sold at prices ranging from $111.41 to $113.65, while on March 26, the range was $111.68 to $114.29. The final day of sales saw shares going for between $111.92 and $113.80. The reported average prices represent the midpoint of these ranges.
It's also important to mention that these sales were carried out under a prearranged trading plan, known as a Rule 10b5-1 plan, which Cutillo adopted on December 20, 2023. Such plans allow insiders to sell shares over a predetermined period of time, in a manner that is compliant with insider trading laws.
After the reported transactions, Cutillo still maintains a significant stake in Sterling Infrastructure, with 488,133 shares to his name. However, it should be noted that 62,190 of these shares are subject to certain restrictions that may affect their sale or transfer.
These transactions come as noteworthy events for investors and market watchers, reflecting a sizable change in insider ownership at Sterling Infrastructure.
InvestingPro Insights
Amidst the news of Sterling Infrastructure, Inc. (NASDAQ:STRL) CEO Joseph A. Cutillo's stock sales, investors are keen to understand the underlying financial health and market performance of the company. Sterling Infrastructure appears robust with a market capitalization of $3.53 billion and has demonstrated impressive growth with a revenue increase of 11.46% in the last twelve months as of Q4 2023. The company's gross profit margin stands at 17.12%, underscoring its profitability in recent times.
From an investment standpoint, Sterling Infrastructure is trading at a P/E ratio of 24.9, which aligns closely with its adjusted P/E ratio of 25.37 for the same period. This valuation metric indicates a balance between the company's share price and its earnings, which can be attractive to investors looking for reasonable investment opportunities. Moreover, the company's PEG ratio, which measures the P/E ratio relative to its earnings growth rate, is at 0.92, suggesting that the stock may be undervalued given its growth potential.
Two InvestingPro Tips highlight the company's financial dynamics. Firstly, Sterling Infrastructure holds more cash than debt on its balance sheet, providing a solid liquidity position. Secondly, the company's stock is currently trading near its 52-week high, with a price 96.95% of that peak, reflecting strong market confidence and potentially limited upside from its current level. These insights, among others, can be further explored with additional tips available at InvestingPro, where users can access a total of 13 InvestingPro Tips to help inform their investment decisions. For those interested in a deeper dive, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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