In a recent transaction on July 10, Jesse G. Singh, the CEO and President of AZEK Co Inc. (NYSE:AZEK), sold 13,000 shares of the company's Class A Common Stock. The sale totaled approximately $542,750, with the sold shares fetching an average price of $41.75 each. This price represents a weighted average, as the shares were sold in multiple transactions with prices ranging from $41.16 to $42.09.
Following the sale, Singh's direct holdings in the company amount to 1,024,444 shares of Class A Common Stock. Additionally, indirect holdings through various trusts include 112,207 shares, 75,000 shares, 206,705 shares, 9,476 shares, and 234,793 shares, respectively. These indirect holdings reflect Singh's interest in the company through trust arrangements.
Investors often keep a close eye on insider transactions as they may provide insights into the company's performance and management's confidence in the company's prospects. While the reasons behind Singh's sale have not been disclosed, the transaction was duly reported in compliance with SEC regulations.
AZEK Co Inc., headquartered in Chicago, Illinois, specializes in plastic products and operates under the industrial classification of plastics products, not elsewhere classified. The company's stock is publicly traded on the New York Stock Exchange, and it continues to be a significant player in the plastic products industry.
For those interested in the detailed figures of the CEO's transactions, AZEK has stated that full information regarding the number of shares sold at each separate price within the provided ranges is available upon request to the company, any security holder, or the staff of the SEC.
In other recent news, Azek Co. has been the focus of several key developments. Loop Capital and Baird have both adjusted their price targets for Azek, with Loop Capital reducing it to $52 and Baird to $54, while maintaining positive ratings. These revisions come against a backdrop of Azek's continued market share gains and margin growth, tempered by cautious revenue projections for the residential segment due to potential high interest rates and a dip in consumer sentiment. Loop Capital's new EBITDA forecasts for Azek for the third quarter of 2024, the full fiscal year of 2024, and fiscal year 2025 are $110 million, $378 million, and $407 million, respectively.
Azek has also reported an 11% increase in consolidated net sales to $418 million for the second quarter of fiscal year 2024, leading to an increase in its full-year sales and adjusted EBITDA guidance. This strong performance has been recognized by Baird, RBC Capital Markets, and Barclays (LON:BARC) Capital Inc., who have all maintained positive ratings for Azek.
In addition, Azek has authorized a new stock repurchase program, allowing the company to buy back up to $600 million of its Class A common stock, in addition to the roughly $75 million remaining from a previous authorization. However, the company has also received a non-compliance notice from the New York Stock Exchange due to a delay in filing its quarterly financial report, with a six-month period to file the overdue report and regain compliance. These are recent developments for Azek.
InvestingPro Insights
As AZEK Co Inc. (NYSE:AZEK) navigates the market, recent data from InvestingPro provides investors with a snapshot of the company's financial health and market performance. The company's market capitalization stands at $6.36 billion, reflecting its substantial size in the plastics products sector. With a Price/Earnings (P/E) ratio of 43.55, AZEK is trading at a premium compared to the industry average, which may suggest investor confidence in its future earnings potential or a view that the company's stock is overvalued. Additionally, a Price/Book (P/B) ratio of 4.58 for the last twelve months as of Q2 2024 indicates that the market values the company at over four times its book value, which could point to expectations of strong growth or a high valuation relative to its assets.
InvestingPro Tips highlight that AZEK is expected to see net income growth this year, which aligns with the positive sentiment that could be inferred from its current trading multiples. Furthermore, the company is noted for operating with a moderate level of debt and having liquid assets that exceed its short-term obligations, suggesting a stable financial position. For investors seeking a deeper dive into AZEK's financials, additional insights are available on InvestingPro, including 10 more tips that could further inform investment decisions.
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