Vice President of Strategic and Business Development at Curtiss-Wright Corp . (NYSE:CW), John C. Watts, recently acquired shares of the company's common stock, according to a new SEC filing. The transaction, part of the company's Employee Stock Purchase Plan, involved the purchase of 25 shares at a price of $232.62 each, totaling approximately $5,815.
The purchase was made on July 3, 2024, and was facilitated under the Employee Stock Purchase Plan which allows employees to set aside payroll deductions to accumulate funds for buying shares at the end of a six-month offering period. Notably, the price per share reflects a 15% discount on the average selling price of Curtiss-Wright's common stock as of June 30, 2024, which marks the end of the offering period.
Following this transaction, Watts's ownership in the company has increased to a total of 4,595 shares of common stock. The filing was signed by Paul J. Ferdenzi, acting by the power of attorney for John C. Watts, and was submitted on July 5, 2024.
Curtiss-Wright Corp., based in Davidson, North Carolina, operates within the industrial and commercial machinery and equipment sector. The company's stock trades on the New York Stock Exchange under the ticker symbol CW.
In other recent news, Curtiss-Wright Corporation has announced a series of significant developments. The company has agreed to acquire Ultra Energy from Ultra Electronics for $200 million, a move aimed at enhancing its offerings in the commercial nuclear and defense industries. The acquisition is expected to positively impact Curtiss-Wright's adjusted diluted earnings per share in the first year, excluding initial purchase accounting costs.
On the financial front, Curtiss-Wright has set ambitious targets for 2026, including an organic revenue compound annual growth rate (CAGR) of over 5%, operating margin expansion that could reach approximately 19%, an earnings per share (EPS) CAGR of over 10%, and free cash flow (FCF) conversion exceeding 105%. These targets were announced during the company's Investor Day, and the guidance for 2024 was reaffirmed.
In relation to this, Truist Securities revised the price target for Curtiss-Wright shares to $270 from the previous $252, maintaining a Buy rating. Similarly, Wolfe Research increased its price target for the company's shares to $320, maintaining an Outperform rating. Both firms cited the company's growth outlook as the reason for the revision.
Aside from financials, Curtiss-Wright has secured a $16 million contract to supply the U.S. Air Force with advanced communications modules and cybersecurity integration. The contract is expected to grow to a value exceeding $60 million and will continue through the end of 2027. These are among the recent developments for Curtiss-Wright Corporation.
InvestingPro Insights
In light of the recent purchase of Curtiss-Wright Corp. (NYSE:CW) shares by John C. Watts, it’s worth examining some key financial metrics and insights from InvestingPro that could provide context to this transaction. With a stable market capitalization of $10.3 billion, Curtiss-Wright appears to be a significant player in the industrial and commercial machinery sector. The company has been demonstrating solid financial performance, with a revenue growth of 11.39% over the last twelve months as of Q1 2024, indicating a robust upward trend in its earnings capacity.
InvestingPro Tips reveal that Curtiss-Wright has a track record of maintaining and growing dividends, having raised its dividend for 7 consecutive years and maintaining dividend payments for an impressive 51 consecutive years. This consistency might be a factor in the confidence displayed by Watts in increasing his stake in the company. Additionally, the company's stock has experienced a large price uptick over the last six months, with a total return of 25.24%, which aligns with the positive revenue growth figures.
However, it is also important to note that the company is trading at a high Price/Earnings (P/E) ratio of 27.55, which could suggest that the stock is valued at a premium relative to near-term earnings growth. Investors considering following in Watts's footsteps might want to keep this in mind, balancing the company's dividend reliability with its current valuation. For those interested in further insights, InvestingPro offers additional tips for Curtiss-Wright, which can be found at https://www.investing.com/pro/CW. To access these insights and more, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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