Kadant director O’Mara sold $117,778 worth of company stock Via Investing.com
WESTFORD, MA—Rebecca Martinez O’Mara, director at Company Kadant Inc . (NYSE:), recently sold 300 shares of the company’s common stock. The shares were sold at an average price of $392.5941 per share, for a total transaction value of approximately $117,778. Following this transaction, O’Mara retains direct ownership of 1,293 shares of Kadant stock.
Kadant Inc., a specialty industrial equipment company, is headquartered in Westford, Massachusetts.
In other recent news, Kadant Inc., a global supplier of engineering technology and systems, approved a quarterly dividend of $0.32 per share, payable in February 2025. This decision is subject to future board approval and may vary depending on the company’s needs or market conditions. Kadant also reported record financial performance for the third quarter of 2024, with an 11% increase in revenue to $272 million and a 15% increase in bookings. Adjusted earnings per share for Q3 were $2.84, up from $2.69 in Q3 2023. The company adjusted its full-year revenue guidance to between $1.047 billion and $1.055 billion and raised its adjusted EPS guidance to -$9.93 to $10.13. Despite the decline in adjusted EBITDA margin for the Core Management segment and lower expected gross margins in Q4 due to project mix-ups, the company’s performance has been strong. However, analysts note a slow recovery in Asia, especially China. Kadant plans to share its five-year financial goals and growth strategy at its investor day in December 2024, preparing for strong demand in 2026, with investments planned for 2024. These are the latest developments following the company’s earnings call.
InvestingPro Insights
Although Rebecca Martinez O’Mara’s recent sale of Kadant Inc. (NYSE:KAI) may raise eyebrows, it’s important to consider the company’s broader financial picture. According to InvestingPro data, Kadant boasts a market capitalization of 4.6 billion dollars, indicating its significant presence in the field of special industrial equipment.
The financial health of the company appears to be strong, with revenue for the last twelve months from Q3 2023 reaching $1.03 billion, marking a growth of 8.72%. More impressively, Kadant’s quarterly revenue growth in Q3 2023 stood at 11.23%, indicating acceleration. The company’s profitability is also noteworthy, with a gross margin of 44.52% and an operating income ratio of 17.59% during the same period.
InvestingPro Tips highlights Kadant’s strong performance, noting that the company has maintained dividend payments for 12 consecutive years and raised its dividend for 7 consecutive years. This commitment to shareholder return is also underscored by the 10.34% dividend growth over the past twelve months.
However, investors should note that Kadant trades at multiple earnings multiples, with a P/E ratio of 40.11. This measurement, coupled with the fact that the stock’s RSI suggests it may be in overbought territory, can explain why a manager may choose to sell certain stocks at current price levels.
For those interested in in-depth analysis, InvestingPro offers 17 additional tips on Kadant, providing a complete overview of the company’s financial health and market conditions.
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