On November 6, Jeffrey Jacobowitz, a director at Donnelley Financial Solutions, Inc. (NYSE:DFIN), sold a significant portion of his holdings in the company. The transactions involved the sale of 233,041 shares of common stock, with a total value of approximately $13.68 million. The shares were sold at prices ranging from $58.27 to $61.16 per share.
Following these transactions, Jacobowitz holds 774,165 shares indirectly, as well as 49,092 shares directly, which include 13,004 restricted stock units. These sales were reported in a filing with the Securities and Exchange Commission.
In other recent news, Donnelley Financial Solutions (DFIN) revealed its third-quarter results for 2024, demonstrating a blend of challenges and growth areas. The company reported net sales of $179.5 million and adjusted EBITDA of $43.2 million. Despite an 8% decrease in transactional revenue due to a weak capital markets environment, DFIN saw a 13.6% organic growth in its software offerings year-over-year, now making up 46% of total sales.
Venue, a key software solution, experienced a 27% sales increase. Despite a decline in print and distribution revenues and increased SG&A expenses, DFIN remains positive about its software solutions growth, especially in ActiveDisclosure, and expects additional recurring software revenue from tailored shareholder reports. The company also repurchased 208,000 shares for $13.3 million, with $108.7 million remaining in stock repurchase authorization.
These are just some of the recent developments for Donnelley Financial Solutions. The company projects fourth-quarter net sales between $165 million and $175 million, with an adjusted EBITDA margin in the low 20% range. DFIN is preparing its 2025 operating plan to benefit from tailored shareholder reports and operational transformations.
InvestingPro Insights
In light of Jeffrey Jacobowitz's recent stock sale, it's worth examining some key financial metrics and insights for Donnelley Financial Solutions (DFIN). According to InvestingPro data, DFIN has a market capitalization of $1.8 billion and a P/E ratio of 18.95, suggesting a relatively moderate valuation for a company in the financial services sector.
One InvestingPro Tip highlights that DFIN has been profitable over the last twelve months, with a revenue of $802.1 million and an operating income margin of 18.53% for the same period. This profitability aligns with another InvestingPro Tip indicating that analysts predict the company will remain profitable this year.
Interestingly, DFIN has shown a significant return over the last week, with a 10.54% price total return. This recent performance contrasts with the director's decision to sell a substantial number of shares. It's worth noting that the stock is trading at 87.89% of its 52-week high, which may have influenced the timing of the insider sale.
For investors seeking a deeper understanding of DFIN's potential, InvestingPro offers additional tips and insights. In fact, there are 5 more InvestingPro Tips available for DFIN, which could provide valuable context for the company's financial health and market position.
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