George T. Hendren, Senior Vice President and Chief Operating Officer of GMS Inc . (NYSE:GMS), recently executed a series of stock transactions, as disclosed in a recent SEC filing. On November 11, Hendren sold 5,000 shares of GMS Inc. common stock at a weighted average price of $102.13, totaling approximately $510,650. This sale was part of a pre-established Rule 10b5-1 trading plan.
In addition to the sale, Hendren exercised stock options to acquire 5,000 shares at $25.60 per share, amounting to $128,000. Following these transactions, Hendren holds 23,772 shares of GMS Inc. stock directly. These moves are part of Hendren's ongoing management of his equity holdings in the company.
In other recent news, GMS Inc. reported a mixed Q1 performance, with a 2.8% increase in net sales to $1.45 billion, but a decline in net income to $57.2 million. These developments were highlighted alongside the company's initiation of a $25 million cost reduction program. Loop Capital maintained its Hold rating on GMS stock, citing ongoing margin headwinds and the fact that expected improvements due to July's steel framing price increases did not materialize.
In other developments, GMS Inc. stockholders approved all board nominees and executive compensation in a recent Annual Meeting. Ernst & Young LLP was ratified as the company's independent registered public accounting firm for the upcoming fiscal year.
Meanwhile, General Motors (NYSE:GM)' autonomous vehicle subsidiary, Cruise, has agreed to pay a $1.5 million fine to the National Highway Traffic Safety Administration (NHTSA) for failure to report a serious incident. This settlement comes as Cruise plans to initiate supervised testing of up to five autonomous vehicles in California's Bay Area, marking a significant step in their progress. These are among the recent developments for both companies.
InvestingPro Insights
The recent stock transactions by George T. Hendren, Senior Vice President and COO of GMS Inc. (NYSE:GMS), come at a time when the company's stock is showing strong performance. According to InvestingPro data, GMS has seen a significant 62.25% price total return over the past year, and is currently trading near its 52-week high, with the stock price at 98.06% of its peak.
InvestingPro Tips highlight that GMS has been profitable over the last twelve months, with analysts predicting continued profitability this year. The company's P/E ratio stands at 16.49, suggesting a reasonable valuation relative to earnings. Additionally, GMS's liquid assets exceed its short-term obligations, indicating a solid financial position.
It's worth noting that while the stock has shown strong returns, the RSI suggests it may be in overbought territory, which could be a factor in Hendren's decision to sell shares. The stock's volatility, as mentioned in another InvestingPro Tip, might also influence insider trading strategies.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for GMS, providing deeper insights into the company's financial health and market position.
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