TAMPA, FL—Gerard H. Gifford, Executive Vice President and Chief Operating Officer of Crown Holdings, Inc. (NYSE:CCK), recently executed a significant stock transaction. On October 23, Gifford sold 10,000 shares of Crown Holdings' common stock at an average price of $95.8875 per share, totaling approximately $958,875.
Following the transaction, Gifford retains direct ownership of 114,402 shares. Additionally, he holds 5,785 shares indirectly through the company's 401(k) plan, as of September 30, 2024. This transaction was reported in a Form 4 filed with the Securities and Exchange Commission on October 24.
In other recent news, Crown Holdings has seen several positive developments. RBC Capital Markets has raised its price target for the company to $113.00 from $105.00, citing its above-market volume growth and effective operations management. The firm also increased its fiscal year 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA) estimate to $1.916 billion. Crown Holdings' third-quarter earnings per share (EPS) of $1.99 exceeded both Loop Capital's estimate and the market consensus, and its consolidated revenues for the quarter were $3.07 billion.
Loop Capital also increased its price target on Crown Holdings from $120 to $129, maintaining a Buy rating. Notably, Jefferies upgraded its price target from $120 to $125, also maintaining a Buy rating.
In another development, Crown Holdings reported a GAAP loss of $1.47 per share due to a non-cash pension settlement charge, but its adjusted earnings per diluted share rose by 15% to $1.99. The company also authorized a $2 billion stock repurchase plan, with $110 million repurchased in the quarter. For the fourth quarter, Crown Holdings projects adjusted earnings per share between $1.45 and $1.55, and increased its full-year guidance to $6.25 to $6.35 per share.
InvestingPro Insights
While Gerard H. Gifford's recent stock sale might raise eyebrows, it's essential to consider Crown Holdings' broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $11.28 billion, reflecting its significant presence in the packaging industry. Crown Holdings has demonstrated profitability over the last twelve months, with a revenue of $11.76 billion, albeit with a slight revenue decline of 3.35% during this period.
Interestingly, an InvestingPro Tip reveals that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This action aligns with another InvestingPro Tip indicating that Crown Holdings has raised its dividend for three consecutive years, potentially signaling financial stability and a commitment to shareholder returns.
The stock's current price of $95.93 is trading near its 52-week high, with a robust 19% total return over the past year. This performance, coupled with the company's P/E ratio of 39.02 (adjusted for the last twelve months), suggests investors are pricing in expectations for future growth.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 7 more tips available for Crown Holdings. These tips could provide valuable context for understanding the company's financial health and market position beyond the recent insider transaction.
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