Michael C. Geraghty, President of the Color Group at Sensient Technologies Corp (NYSE:SXT), recently sold 4,000 shares of the company's common stock. The shares were sold at an average price of $80.4829 each, amounting to a total transaction value of approximately $321,931. Following this sale, Geraghty retains direct ownership of 36,517.945 shares in the company.
Additionally, Geraghty holds shares indirectly through various plans, including 405.548 shares in the Supplemental Benefit Plan and 655.763 shares in the ESOP, as of the end of the preceding month. The transaction was executed in multiple trades at prices ranging from $80.36 to $80.60.
In other recent news, Sensient Technologies showcased a strong performance in the third quarter of 2024, with significant growth in local currency revenue and adjusted EBITDA. The company's Q3 revenue climbed to $392.6 million, a 9% increase from the same period last year. Additionally, the adjusted EBITDA grew by 13%, with the margin standing at 17.6%.
Notably, Sensient's Color Group reported a 13% revenue growth and a 31% operating profit growth. The company also anticipates high single-digit growth in local currency revenue and adjusted EBITDA for the full year, with a mid-single-digit rate growth in adjusted EPS. This growth, however, is expected to be influenced by higher taxes and interest expenses.
Furthermore, Sensient has projected high single-digit revenue growth in local currency and adjusted EBITDA for the full year. The company also anticipates mid-single-digit revenue growth for 2025 and expects portfolio optimization to yield $8 million to $10 million in savings. As part of its financial strategy, Sensient aims to reduce its net debt to credit-adjusted EBITDA ratio to the low 2s by next year.
InvestingPro Insights
Sensient Technologies Corp (NYSE:SXT) has been demonstrating strong market performance, with the stock trading near its 52-week high and showing a 41.88% total return over the past year. This aligns with the recent insider sale by Michael C. Geraghty, as executives often sell shares when they perceive the stock to be well-valued.
InvestingPro data reveals that Sensient has a market capitalization of $3.37 billion and a P/E ratio of 37.75, indicating that the stock is trading at a high earnings multiple. This valuation metric suggests investors are pricing in expectations for future growth.
An InvestingPro Tip highlights that Sensient has maintained dividend payments for 54 consecutive years, showcasing the company's commitment to shareholder returns. This long-standing dividend history may be particularly appealing to income-focused investors. The current dividend yield stands at 2.06%, providing a steady income stream for shareholders.
Another relevant InvestingPro Tip notes that Sensient's stock generally trades with low price volatility, which could be attractive to risk-averse investors looking for stable returns. This characteristic, combined with the company's consistent profitability over the last twelve months, paints a picture of a stable and mature business.
For readers interested in a deeper analysis, InvestingPro offers 7 additional tips for Sensient Technologies, providing a more comprehensive view of the company's financial health and market position.
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