Nicholas Alec Vlahos, the Chief Financial Officer of Eastern Co (NASDAQ:EML), has made significant purchases of the company's stock, according to a recent SEC filing. Vlahos acquired a total of 500 common shares on November 20, 2024, at a price of $27.45 per share, amounting to a total value of $13,725. Additionally, throughout the year, Vlahos made several smaller purchases, acquiring shares through the reinvestment of dividends under the Eastern Company Investors Choice Dividend Reinvestment and Direct Stock Purchase Sale Plan. These transactions, collectively, amounted to $14,463, with purchase prices ranging from $26.08 to $31.27 per share.
The purchases reflect Vlahos's continued investment in Eastern Co, a company specializing in cutlery, hand tools, and general hardware, based in Shelton, Connecticut. Following these transactions, Vlahos now holds 4,151 shares in the company.
In other recent news, The Eastern Company reported a significant improvement in its third-quarter financial results, with net sales rising by 15% to $71.3 million and net income increasing to $4.7 million. This growth comes alongside strategic changes, including the appointment of a new CEO, Ryan Schroeder, and the divestiture of the Big 3 Mold business. The company's focus on strengthening its position in the commercial vehicle, automotive, and other industrial markets was also highlighted. However, it was noted that the company recognized a loss of $19.2 million from the write-down of the Big 3 Mold business. Despite this, Eastern's strategic pricing actions and cost savings have reportedly strengthened gross margins. These are recent developments that could shape the company's future operations.
InvestingPro Insights
Nicholas Alec Vlahos's recent stock purchases align with several positive indicators for Eastern Co (NASDAQ:EML). According to InvestingPro data, the company has demonstrated strong financial performance, with a revenue growth of 7.7% over the last twelve months as of Q3 2024, reaching $284.46 million. More impressively, the company's EBITDA growth stands at a robust 48.42% for the same period.
These financial metrics are complemented by two key InvestingPro Tips. Firstly, Eastern Co has maintained dividend payments for an impressive 54 consecutive years, underscoring its commitment to shareholder returns and financial stability. This long-standing dividend history may have influenced Vlahos's decision to reinvest dividends through the company's Dividend Reinvestment Plan. Secondly, the company has been profitable over the last twelve months, with an adjusted P/E ratio of 13.96, suggesting a reasonable valuation relative to its earnings.
Despite the stock's poor performance over the last month, with a -13.76% total return, the company's year-to-date return stands at a strong 30.33%. This volatility presents an opportunity for investors like Vlahos to accumulate shares at potentially attractive prices.
For readers interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insight into Eastern Co's financial health and market position. The InvestingPro product includes 3 more tips that could be valuable for investors considering this stock.
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