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Superior group executive buys $26k and sells $121k in stock

Published 08/15/2024, 03:09 PM
SGC
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In recent market activity involving Superior Group of Companies, Inc. (NASDAQ:SGC), Jake Himelstein, the President of BAMKO, LLC, a subsidiary of Superior Group, has engaged in both buying and selling of the company's stock. On one occasion, Himelstein acquired 2,000 shares at an average price of $13.00 per share, amounting to a total investment of $26,000. This transaction took place on August 14, 2024.

Conversely, a separate transaction on July 1, 2024, saw Himelstein dispose of 6,401 shares. These shares were withheld by the company to cover applicable withholding taxes related to the vesting of a restricted stock award. The sales fetched an average price of $18.91 per share, totaling approximately $121,042.

Following the buy transaction, Himelstein's ownership in Superior Group increased to 40,825 shares. It's important to note that a portion of these shares, specifically 12,341, remain subject to forfeiture as indicated in the footnotes of the SEC filing. This potential forfeiture is associated with conditions tied to restricted stock awards.

Investors and market watchers often scrutinize insider transactions such as these for insights into executive confidence and company health. The recent trades by Himelstein provide a glimpse into the executive's financial moves with respect to their stake in Superior Group of Companies, Inc.

In other recent news, Superior Group of Companies announced a new stock repurchase initiative, authorizing the buyback of up to $10 million of its common stock over the next year. This plan replaces the previous one, under which the company repurchased 92,549 shares. The company also disclosed its Q2 2024 financial results, reporting a 2% revenue increase to $132 million, which fell short of expectations due to market and supply chain disruptions. Despite these challenges, the company's full-year outlook remains unchanged, projecting revenues between $563 million and $570 million, and earnings per diluted share from $0.73 to $0.79. The company's healthcare apparel segment saw a 5% decrease in revenue, while the branded products and contact centers segments saw increases of 2% and 9%, respectively. Superior Group also reported an improved net leverage ratio to 1.7 times trailing 12-month covenant EBITDA, down from 3.7 times the previous year. The company's recent developments indicate a commitment to strategic investments for expanding its market share, anticipating a strong third and fourth quarter driven by seasonality and supply chain recovery.

InvestingPro Insights

Amidst the insider trading activity at Superior Group of Companies, Inc. (NASDAQ:SGC), investors looking for additional insights can consider the latest data and analysis from InvestingPro. With a market capitalization of $228.29 million and a trailing twelve-month P/E ratio of 20.55, SGC's valuation metrics suggest a company with moderate earnings multiples. The dividend yield stands at a notable 4.35%, reflecting a substantial return to shareholders, especially considering the company has maintained dividend payments for 48 consecutive years.

An InvestingPro Tip indicates that SGC has raised its dividend for three consecutive years, signaling a potential commitment to returning value to shareholders. Additionally, two analysts have recently revised their earnings estimates upwards for the upcoming period, which could be interpreted as a positive sentiment around the company's future financial performance.

For those interested in the stock's recent performance, SGC has seen a significant return over the last week with a price total return of 8.51%. This could resonate with investors looking for short-term gains, although it's important to note that the stock has experienced high price volatility, as mentioned in another InvestingPro Tip. For a more comprehensive analysis, there are over ten additional InvestingPro Tips available, providing a deeper dive into the company's financial health and stock performance.

Overall, these metrics and insights from InvestingPro could be valuable for investors trying to gauge the potential risks and rewards associated with investing in Superior Group of Companies, Inc., especially in the context of recent insider trading activity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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