In a recent SEC filing, Thomas L. Ryan, the President, CEO, and Chairman of Service Corp International (NYSE:SCI), disclosed significant stock transactions. On November 5 and 6, Ryan sold a total of 104,000 shares of the company's common stock, generating approximately $8.88 million. The shares were sold at prices ranging from $83.354 to $86.3257 per share.
Additionally, the filing revealed that Ryan exercised stock options to acquire 104,000 shares at a price of $37.53 per share on the same dates. Following these transactions, Ryan holds 982,333 shares directly.
These transactions are part of routine financial activities by corporate executives and offer insights into their stock management strategies.
In other recent news, Service Corporation International (NYSE:SCI) reported a slight uptick in its adjusted earnings per share (EPS) for the third quarter of 2024, rising to $0.79 from $0.78 in the same period last year. The company highlighted key investments, including $123 million in acquisitions and $31 million in real estate. Additionally, SCI saw a 1% increase in comparable funeral revenues, while cemetery revenue remained stable.
The company also reported an 18% year-over-year growth in adjusted operating cash flow. Looking ahead, SCI anticipates an adjusted EPS of $1 to $1.10 for the fourth quarter and forecasts 8% to 12% annual EPS growth in 2025. The company also returned nearly $65 million to shareholders through dividends and share repurchases.
However, SCI expects increased cash tax payments in 2025. Despite a 1% decline in core funeral volume and the impact of market shutdowns in Western Florida due to hurricanes, the company remains optimistic about future volume trends and acquisition opportunities. These are among the recent developments in the company's operations.
InvestingPro Insights
The recent stock transactions by Service Corp International's CEO Thomas L. Ryan align with the company's strong market performance. According to InvestingPro data, SCI's stock has shown impressive returns, with a 51.02% price total return over the past year and a 29.01% return over the last six months. This robust performance is reflected in the stock trading near its 52-week high, with the current price at 99.05% of that peak.
InvestingPro Tips highlight that SCI has maintained dividend payments for 20 consecutive years and has raised its dividend for 10 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the company's current dividend yield of 1.38%.
However, investors should note that the stock is trading at a high Price / Book multiple of 7.64 and a P/E ratio of 24.69, which may indicate a premium valuation. An InvestingPro Tip also suggests that the stock is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 3.11.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips for Service Corp International, providing a comprehensive view of the company's financial health and market position.
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