Frederick DiSanto, a director at Eastern Co (NASDAQ:EML), recently made several purchases of the company's common stock. According to a recent SEC filing, DiSanto acquired a total of 1,187 shares over three days, from November 13 to November 15, 2024. The transactions were completed at prices ranging from $26.96 to $27.50 per share, amounting to a total investment of $32,410.
Following these transactions, DiSanto holds 65,499 shares directly. Additionally, he has a pecuniary interest in shares held by Ancora Catalyst Fund LP and Ancora Merlin Fund LP, as noted in the filing. These interests are due to his role as Chairman and CEO of Ancora Alternatives LLC, the General Partner of these funds.
In other recent news, Eastern Company has reported substantial growth in its Q3 financial results, with a notable increase in net sales by 15% to $71.3 million and net income rising to $4.7 million. These developments coincide with the appointment of a new CEO, Ryan Schroeder, and the strategic decision to divest from the Big 3 Mold business. The company's recent focus has been on strengthening its position in the commercial vehicle, automotive, and other industrial markets. Eastern Company's backlog also showed an increase by 13% to $97.2 million, further indicating a positive trend in its operations. However, 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 led to an improvement in gross margins. These are the recent developments that have been shaping the narrative for Eastern Company.
InvestingPro Insights
The recent insider buying by Frederick DiSanto aligns with several positive indicators for Eastern Co (NASDAQ:EML). According to InvestingPro data, the company's stock has shown a strong performance with a 51.87% total return over the past year. This impressive gain suggests that DiSanto's confidence in the company is shared by the broader market.
Eastern Co's financial health appears robust, with InvestingPro Tips highlighting that the company's liquid assets exceed its short-term obligations. This strong liquidity position provides financial flexibility and reduces risk, which may have factored into DiSanto's decision to increase his stake.
Moreover, Eastern Co has maintained dividend payments for an impressive 54 consecutive years, as noted by another InvestingPro Tip. This long-standing commitment to shareholder returns demonstrates the company's financial stability and management's confidence in its long-term prospects.
The company's profitability over the last twelve months, as indicated by InvestingPro, further supports the positive outlook. With a P/E ratio (adjusted) of 13.7 for the last twelve months as of Q3 2024, Eastern Co appears to be reasonably valued compared to its earnings, potentially offering an attractive entry point for investors like DiSanto.
For readers interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further context to Eastern Co's financial position and market performance. The platform lists several more insights that could be valuable for investment decision-making.
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