Cadre Holdings, Inc. (NYSE:CDRE), a company specializing in orthopedic, prosthetic, and surgical appliances and supplies, has reported a notable transaction by Director Nicolas Sokolow. According to a recent SEC filing, Sokolow sold a significant number of shares in the company.
The transaction, which took place on August 20, 2024, involved the sale of 20,000 shares of Cadre Holdings' common stock. The sales were executed at a weighted average price of $35.1015, with individual transactions ranging between $35.10 and $35.13 per share. This resulted in a total transaction value of approximately $702,030.
Following this sale, Nicolas Sokolow's direct holdings in Cadre Holdings decreased, but he still maintains a substantial indirect ownership through various entities. Specifically, the shares sold were owned by ST Investors Fund, LLC, of which Sokolow is the secretary and treasurer. Post-transaction, ST Investors Fund, LLC holds 487,620 shares of Cadre Holdings.
In addition to the shares sold, Sokolow is associated with indirect ownership of Cadre Holdings' stock through Korsak Holdings, LLC, and Madetys Investments, LLC, holding 252,701 and 84,231 shares, respectively. Sokolow serves as secretary and treasurer for Korsak Holdings and as the general manager for Madetys Investments. It is important to note that Sokolow disclaims beneficial ownership of these securities, except to the extent of his pecuniary interest.
The SEC filing also indicates that Sokolow's direct holdings in Cadre Holdings after the transaction amount to 62,347 shares.
Cadre Holdings, based in Jacksonville, Florida, is known for its significant role in the medical supplies sector. This latest transaction provides insight into the trading activities of one of its key directors. Investors often monitor such filings to gauge the confidence of company insiders in the firm's performance and prospects.
In other recent news, Cadre Holdings has reported substantial year-over-year growth in Q2 2024, including a 19% increase in net sales and net income. The company's adjusted EBITDA also showed strength, supported by a 5% organic growth and contributions from recent acquisitions of ICOR and Alpha. Despite a cyber incident affecting gross margins, the company anticipates a robust final quarter due to a backlog of delayed orders.
Additionally, Cadre has revised its revenue outlook upward for the year 2024, while maintaining its adjusted EBITDA forecast. The firm is actively pursuing mergers and acquisitions, particularly in the law enforcement, military, and nuclear safety sectors.
Roth/MKM has adjusted Cadre Holdings' stock price target, decreasing it to $39.00 from $43.00, but continues to recommend a Buy rating. The company has provided guidance for adjusted EBITDA to be between $103 million and $109 million and capital expenditures between $7 million and $9 million. These developments reflect recent events in the company's operations.
InvestingPro Insights
Amidst the latest developments at Cadre Holdings, Inc. (NYSE:CDRE), where Director Nicolas Sokolow has sold a notable number of shares, investors are keen to understand the company's financial health and market position. Here are some key metrics and insights from InvestingPro that may shed light on Cadre Holdings' current standing:
As of the last twelve months leading up to Q2 2024, Cadre Holdings has a market capitalization of $1.43 billion and is trading with a Price/Earnings (P/E) ratio of 30.46, which suggests that the stock is trading at a high earnings multiple. This aligns with an InvestingPro Tip that highlights Cadre Holdings is trading at a high P/E ratio relative to near-term earnings growth. The company's PEG ratio, which measures the P/E ratio relative to the growth rate of its earnings, stands at 1.14, indicating that the stock's price may be high compared to its earnings growth.
On the positive side, Cadre Holdings has exhibited a healthy revenue growth of 13.64% over the last twelve months as of Q2 2024, with a gross profit margin of 41.73%. These figures suggest that the company has been effectively managing its costs and scaling its operations. Another InvestingPro Tip reveals that Cadre Holdings' liquid assets exceed its short-term obligations, which indicates a strong liquidity position that can reassure investors about the company's ability to meet its immediate financial commitments.
For those interested in understanding the company's performance in greater depth, InvestingPro offers additional tips on Cadre Holdings. There are currently 9 more InvestingPro Tips available, which can provide investors with a comprehensive analysis of the company's financial health, stock valuation, and market performance.
With the next earnings date set for November 7, 2024, investors and stakeholders will be closely watching Cadre Holdings' financial results and any strategic updates from the management. In the meantime, the InvestingPro insights can serve as a valuable tool for those looking to make informed investment decisions regarding Cadre Holdings.
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