AdvanSix Inc . (NYSE:ASIX) has reported that its Chief Executive Officer, Erin N. Kane, sold a total of $101,374 worth of company stock, according to a recent filing with the Securities and Exchange Commission. The transactions took place over two separate days, with prices ranging from $27.86 to $28.08 per share.
On the 2nd of April, Kane sold 613 shares at an average price of $27.86. Following this sale, she still retained 555,757 shares of AdvanSix stock. The sales continued on the 4th of April, where Kane disposed of an additional 3,002 shares at an average price of $28.08. After these transactions, the CEO held 552,755 shares in the company.
The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which Kane had adopted on December 8, 2023. This plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
The transactions were part of a series of multiple trades at varying prices. For the April 2nd sale, the shares were sold at prices from $27.83 to $27.87, and for the April 4th sale, the prices ranged from $27.96 to $28.28. Kane has committed to providing full information regarding the number of shares sold at each separate price upon request by the issuer, any security holder, or the SEC staff.
Investors often monitor insider sales as they may provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is also common for executives to sell shares for personal financial planning purposes, unrelated to their outlook on the company's performance.
AdvanSix Inc. is a manufacturer of plastic resins and chemicals, which are used in a variety of products and applications across industries. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ASIX.
InvestingPro Insights
AdvanSix Inc. (NYSE:ASIX) has recently seen significant insider activity, with CEO Erin N. Kane selling a portion of her shares. Investors looking to understand the potential impact of these sales on their investment decisions can find valuable insights through InvestingPro. Here are some key metrics and tips:
InvestingPro Data shows that AdvanSix has a market capitalization of $740.66M and a price-to-earnings (P/E) ratio of 13.9, which is slightly lower than the adjusted P/E ratio for the last twelve months as of Q4 2023 at 13.56. This suggests a relatively stable valuation over recent quarters. Additionally, the company's revenue for the same period was $1533.6M, although it experienced a decline in revenue growth by -21.18% year-over-year.
From the perspective of shareholder returns, AdvanSix has raised its dividend for 3 consecutive years, which is a positive sign for investors seeking income. The dividend yield as of the latest data stands at 2.31%. However, it is important to note that the company's gross profit margins have been weak, at 10.76%, indicating potential challenges in profitability or cost management.
InvestingPro Tips highlight that while management has been aggressively buying back shares, which can be a signal of confidence in the company's future, analysts have revised their earnings expectations downwards for the upcoming period. This mixed sentiment is something investors may want to consider. Despite these revisions, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months.
For those interested in a deeper analysis, there are additional InvestingPro Tips available. These tips can provide further context to the CEO's recent stock sales and the company's financial health. To explore these insights and make more informed decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 6 more InvestingPro Tips available for AdvanSix, which can be accessed through the provided link.
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