In a recent transaction on May 14, Justin A. Gannon, a director at CrossAmerica Partners LP (NYSE:CAPL), purchased 500 shares of the company’s common units at a price of $19.39 per share, amounting to a total investment of $9,695. This acquisition was disclosed in a regulatory filing with the Securities and Exchange Commission.
The transaction has increased Gannon's total holdings in CrossAmerica Partners to 29,860 common units. The purchase reflects a direct investment in the company's stock, signaling a vote of confidence in the firm's future prospects.
CrossAmerica Partners LP, based in Allentown, Pennsylvania, operates in the wholesale distribution of petroleum and petroleum products. The company, formerly known as Lehigh Gas Partners LP, has a network that includes gas stations and convenience stores across the United States.
Investors often monitor insider transactions as they can provide insights into how the company’s top executives and directors view the stock's value and future performance. Gannon's recent purchase may be interpreted by the market as a positive sign.
CrossAmerica Partners has not made any additional comments regarding the transaction. The details of the purchase were made public through the SEC filing, which is a standard procedure for transactions involving company insiders.
InvestingPro Insights
Following the recent insider purchase by director Justin A. Gannon, CrossAmerica Partners LP (NYSE:CAPL) demonstrates a mixed financial landscape. Despite a challenging period with a 1 Week Price Total Return of -7.57% and a 1 Month Price Total Return of -10.17%, the company is trading at an InvestingPro Fair Value of $20.15 USD, slightly above the purchase price of $19.39 per share. This suggests potential undervaluation at the time of Gannon's investment.
One of the notable InvestingPro Tips for CrossAmerica Partners is the high Dividend Yield of 10.75%, which is particularly attractive to income-focused investors and reflects the company's commitment to returning value to shareholders. This is underscored by the fact that the company has maintained dividend payments for 12 consecutive years.
However, the company's financial health is not without concern. CrossAmerica Partners is currently facing a Gross Profit Margin of 9.5%, pointing to potential challenges in maintaining profitability. Additionally, the stock's P/E Ratio of 18.64, adjusted to 23.2 for the last twelve months as of Q1 2024, indicates that it is trading at a high earnings multiple, which may suggest that the stock is priced optimistically relative to its earnings.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available, which could provide deeper insights into CrossAmerica Partners' financial health and stock performance. Take advantage of these insights and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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