Helen Golding, a director at Reynolds Consumer Products Inc . (NASDAQ:REYN), recently purchased 1,190 shares of the company's common stock. The transaction, reported in a Form 4 filing with the Securities and Exchange Commission, took place on November 14, 2024, with shares acquired at an average price of $27.5826 each. This purchase amounts to a total value of approximately $32,823. Following this transaction, Golding now directly owns 1,190 shares of Reynolds Consumer Products.
In other recent news, Reynolds Consumer Products reported its Q3 2024 earnings, with total revenues reaching $910 million, an adjusted EBITDA of $171 million, and an 11% increase in earnings per share to $0.41. The company also announced leadership changes, with Scott Huckins set to become President and CEO, and Nathan Lowe to take over as CFO starting January 1, 2025. The full-year revenue outlook has been slightly increased to between $3.620 billion and $3.660 billion, with a full-year EPS projected to be between $1.66 and $1.70.
The company anticipates Q4 2024 net revenue between $945 million and $985 million, and a Q4 adjusted EBITDA between $208 million and $218 million. Despite challenges in the waste bag market and higher resin prices impacting profits, Reynolds Consumer Products expects low single-digit growth long-term, with a focus on cash flow, strategic investments, and debt reduction. These are the recent developments for the company.
InvestingPro Insights
The recent insider purchase by Helen Golding aligns with several positive indicators for Reynolds Consumer Products Inc. (NASDAQ:REYN). According to InvestingPro data, the company's stock is currently trading at a P/E ratio of 15.58, which is considered low relative to its near-term earnings growth potential. This valuation metric suggests that the stock may be undervalued, potentially supporting Golding's decision to increase her stake.
InvestingPro Tips highlight that Reynolds Consumer Products has been profitable over the last twelve months and is expected to remain profitable this year, as predicted by analysts. This financial stability is further underscored by the company's strong liquidity position, with liquid assets exceeding short-term obligations. These factors may have contributed to the director's confidence in making the purchase.
It's worth noting that while the company has shown profitability, there are some challenges on the horizon. InvestingPro Tips reveal that five analysts have revised their earnings downwards for the upcoming period, which investors should consider alongside the positive indicators.
For those seeking a deeper analysis, InvestingPro offers 14 additional tips for Reynolds Consumer Products, providing a more comprehensive view of the company's financial health and market position.
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