In a recent transaction on June 12, William C. Zint, the Senior Vice President and Chief Financial Officer of Deluxe Corp (NYSE:DLX), purchased 120 shares of the company's common stock. The transaction was completed at a price of $23.0 per share, amounting to a total investment of $2,760.
This purchase was made in accordance with a pre-arranged 10b5-1(c) trading plan, which Mr. Zint had adopted on December 11, 2023. Such plans allow company insiders to set up a trading schedule in advance to buy or sell shares at predetermined times, providing an affirmative defense against accusations of trading on insider information.
Following this transaction, Zint's total holdings in Deluxe Corp have increased to 11,464 shares of common stock. The move demonstrates a commitment by the CFO to invest in the company, which is known for its work in the blankbooks, looseleaf binders, bookbinding, and related manufacturing sector.
Deluxe Corp, headquartered in Minneapolis, Minnesota, has a rich history dating back to its former name, Deluxe Check Printers Inc., before its name change in June 1988. Deluxe Corp continues to operate from its base in Minneapolis, maintaining its position in the industry with a focus on innovation and customer service.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into the executive's perspective on the company's future prospects. The recent purchase by Mr. Zint may be seen by some as a positive signal regarding the financial health and trajectory of Deluxe Corp.
In other recent news, Deluxe Corp has showcased a robust financial performance for the first quarter of 2024, despite a marginal decrease in total revenue. The company's earnings call revealed an optimistic outlook, with raised cash flow guidance and significant growth in key areas, such as the Payments and Data business. TD Cowen has responded to these developments by increasing the stock price target for Deluxe Corp to $35.00 from the previous $33.00, while maintaining a Buy rating.
The revised price target is based on steady valuation multiples, reflecting confidence in Deluxe Corp's consistent market performance. The company's management has provided an encouraging forecast, which has been factored into the updated estimates by TD Cowen. The firm anticipates that Deluxe Corp is likely to exceed financial expectations in the upcoming quarters of the year.
These recent developments underscore the likelihood of Deluxe Corp continuing its positive trajectory throughout the remainder of 2024. The company plans to focus on organic revenue growth, EBITDA expansion, and deleveraging for the rest of the year, and the North Star initiative is on track to deliver significant financial benefits by 2026. As such, Deluxe Corp appears to be on a steady path towards its long-term goals.
InvestingPro Insights
With the recent insider purchase by Deluxe Corp's (NYSE:DLX) CFO, William C. Zint, investors might be looking for further signals to understand the company's financial health and future prospects. Deluxe Corp, a mainstay in the manufacturing sector for printed products and services, presents a mixed financial picture according to the latest data from InvestingPro.
The company's market capitalization stands at a solid $965.93 million, reflecting its established presence in the industry. However, its revenue has shown a slight decline over the last twelve months as of Q1 2024, with a -2.04% change. Despite this, Deluxe Corp boasts a robust gross profit margin of 53.47%, indicating efficient operations and a strong pricing strategy.
InvestingPro Tips highlight Deluxe Corp's impressive gross profit margins and the expectation that net income will grow this year. These factors, combined with a notable 18.59% return over the last three months, suggest that the company is maintaining profitability and potentially offering value to investors. Moreover, Deluxe Corp has a longstanding history of rewarding shareholders, having maintained dividend payments for 54 consecutive years, with a current dividend yield of 5.34%.
For investors seeking a deeper dive into Deluxe Corp's performance metrics and strategic insights, there are additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/DLX. To enhance your investment research with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With seven more tips available on InvestingPro, you can further assess the investment potential of Deluxe Corp.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.