In a recent transaction disclosed to the Securities and Exchange Commission, Don Sullivan, Executive Vice President and Chief Strategy Officer of CSW Industrials, Inc. (NASDAQ:CSWI), sold 1,965 shares of the company's common stock. The transaction comes as the company's stock has shown remarkable strength, with a 91% return over the past year and an 88% gain year-to-date, according to InvestingPro data. The shares were sold at a price of $387.15 each, amounting to a total transaction value of $760,749. Following this sale, Sullivan retains direct ownership of 30,804 shares. Additionally, he holds 1,801 shares indirectly through an Employee Stock Ownership Plan (ESOP). With a market capitalization of $6.56 billion and a P/E ratio of 52.7, InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The transaction was conducted under a 10b5-1 trading plan, which Sullivan established on September 13, 2024. This type of plan allows company insiders to sell a predetermined number of shares at a predetermined time, reducing concerns about insider trading. Despite the insider sale, CSW Industrials maintains a "GREAT" financial health score according to InvestingPro, which offers comprehensive analysis and 15 additional key insights about the company in its Pro Research Report.
In other recent news, CSW Industrials reported significant year-over-year increases in its Q2 2025 results, with revenue reaching $228 million and operating cash flow hitting $67 million. Earnings per diluted share stood at $2.26, while EBITDA was $61 million. The company also successfully raised $347 million through a public equity offering, eliminating all outstanding debt. CSW Industrials acquired PSP Products, a move expected to enhance the company's electrical product offerings. However, the company anticipates higher costs of goods sold in the second half of FY 2025 due to increased ocean freight rates. Goldman Sachs, Wells Fargo (NYSE:WFC), and Citi initiated coverage on CSW Industrials with Neutral ratings and varying price targets, reflecting valuation concerns despite a 16% EPS growth outlook. Analysts from James Perry acknowledged the challenge of higher costs but indicated the company's readiness to manage these through pricing strategies. These are the recent developments around CSW Industrials.
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