Cincinnati-based Hillman Solutions Corp. (NASDAQ:HLMN) has reported a significant stock transaction involving its President of Hillman Canada, Ride Scott. According to a recent filing, Scott sold 72,523 shares of common stock on November 18, 2024, at a weighted average price of $10.665 per share, amounting to a total value of $773,457. This transaction was executed in multiple trades with prices ranging from $10.65 to $10.695.
In addition to the sale, Scott also acquired 72,523 shares through the exercise of stock options at a price of $6.07 per share, totaling $440,214. Following these transactions, Scott now holds 70,369 shares of Hillman Solutions' common stock directly.
These transactions reflect Scott's continued engagement with the company, as the options exercised were initially granted in 2017 and vested in four equal annual installments.
In other recent news, Hillman Solutions has disclosed mixed results in its third-quarter earnings call for 2024. The company reported a slight dip in net sales, registering at $393.3 million, a 1.4% decrease from the previous year. However, it saw a notable increase in adjusted EBITDA, up by 9% to $72.6 million, indicating improved margins. These developments come in conjunction with the company's acquisition of Intex, a move expected to fuel growth, and the upcoming leadership transition to Jon Michael Adinolfi in January 2025.
Hillman Solutions has adjusted its full-year net sales forecast to range between $1.455 billion and $1.485 billion, a 4% rise from the previous year. The company also anticipates adjusted EBITDA to hit around $250 million, a 14% increase from 2023. Despite the challenges posed by True Value's Chapter 11 filing, which resulted in an $8.8 million at-risk receivable, Hillman Solutions maintains a positive outlook on its strategic acquisitions and customer relationships.
These are just some of the recent developments, as the company also prepares for a historic surge in home improvement projects in 2025, propelled by favorable macroeconomic conditions. Hillman Solutions is also managing potential headwinds in price-cost spreads moving into 2025 and plans to handle costs strategically, possibly increasing prices as necessary.
InvestingPro Insights
To provide additional context to Ride Scott's recent stock transactions, let's examine some key financial metrics and insights for Hillman Solutions Corp. (NASDAQ:HLMN).
According to InvestingPro data, Hillman Solutions has a market capitalization of $2.11 billion. The company's stock has shown strong performance over the past year, with a 49.93% price total return. This impressive gain aligns with Scott's decision to exercise options and sell a portion of his holdings, potentially capitalizing on the stock's upward trajectory.
InvestingPro Tips highlight that Hillman Solutions is expected to see net income growth this year, and analysts predict the company will be profitable. This positive outlook may have influenced Scott's decision to maintain a significant stake in the company, holding 70,369 shares after the transactions.
It's worth noting that Hillman Solutions is trading at a high earnings multiple, with a P/E ratio of 249.53. This valuation suggests investors have high expectations for the company's future growth prospects. The stock's volatility, as mentioned in another InvestingPro Tip, could explain why insiders like Scott might choose to diversify their holdings while still maintaining a substantial position.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for Hillman Solutions, providing a deeper understanding of the company's financial health and market position.
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