In a recent transaction, Barry C. McCarthy, President and CEO of Deluxe Corp (NYSE:DLX), acquired shares of the company's common stock, signaling a vote of confidence in the business. The executive purchased a total of 2,820 shares at an average price of $19.08 per share, amounting to approximately $53,805.
The transaction, which took place on September 10, 2024, was part of a pre-arranged trading plan under Rule 10b5-1(c), which allows company insiders to set up a schedule for buying and selling stocks at a time when they are not in possession of material non-public information. This plan was adopted by Mr. McCarthy on December 13, 2023.
According to the details provided, the shares were bought in multiple trades with prices ranging from $19.00 to $19.10. The reported average price reflects the weighted average purchase price of these transactions. Following the acquisition, McCarthy now directly owns a total of 178,670 shares in Deluxe Corp.
This move by the company's CEO may be of interest to investors, as insider purchases can often be interpreted as a positive sign about the company's future prospects. Deluxe Corp, known for its work in the blankbooks, looseleaf binders, bookbinding, and related manufacturing sector, has its headquarters in Minneapolis, Minnesota.
In other recent news, Deluxe Corporation announced the departure of its Principal Accounting Officer, Chad P. Kurth, as well as the appointment of Angela L. Brown to its Board of Directors. These changes come amidst the company's Q2 2024 financial results, which reported a GAAP net income of $20.5 million and adjusted EBITDA of $101.8 million. Despite a 5.9% decrease in total revenue, the Merchant Services segment demonstrated growth. However, Deluxe's B2B Payments and Print segments experienced declines.
The company maintains its full-year guidance for adjusted EBITDA between $400 million and $420 million, with an adjusted EPS forecast between $3.10 and $3.40. Amid these developments, Deluxe's North Star operating plan, projected to significantly enhance profitability by 2026, is underway. However, due to economic pressures on consumer spending, Deluxe revised its revenue expectations slightly downward. These are among the recent developments in Deluxe Corporation.
InvestingPro Insights
Recent insider trading activity at Deluxe Corp (NYSE:DLX) has caught the attention of the market, with President and CEO Barry C. McCarthy purchasing shares, demonstrating his belief in the company's value. To further contextualize this move, let's delve into some metrics and tips provided by InvestingPro.
Deluxe Corp's market capitalization currently stands at $846.64 million, with a P/E ratio of 21.99, reflecting investor sentiment on its earnings capacity. For those looking at longer-term metrics, the P/E ratio for the last twelve months as of Q2 2024 has adjusted to a lower figure of 11.16, suggesting a more attractive valuation relative to earnings. Additionally, the company boasts a robust gross profit margin of 53.87%, which is a testament to its efficient cost management and pricing strategy.
InvestingPro Tips highlight the company's high shareholder yield and significant dividend payments, which have been consistently distributed for 54 consecutive years. These factors may be particularly appealing to income-focused investors. Deluxe Corp's net income is also expected to grow this year, and analysts predict the company will remain profitable, with profitability having been sustained over the last twelve months.
It's worth noting that the company's dividend yield stands at an impressive 6.34%, which is particularly noteworthy for shareholders seeking regular income streams. However, it's important to consider that three analysts have revised their earnings expectations downwards for the upcoming period, which could be a point for potential investors to watch closely.
For those interested in more in-depth analysis and additional insights, InvestingPro offers a total of 9 tips for Deluxe Corp, providing a more comprehensive view of the company's financial health and future prospects. To explore these further, investors can visit the dedicated page for Deluxe Corp on InvestingPro.
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