In a recent transaction, William C. Zint, the Senior Vice President and Chief Financial Officer of Deluxe Corp (NYSE:DLX), has purchased 120 shares of the company's common stock. The transaction, which took place on September 12, 2024, was executed at a price of $19.06 per share, amounting to a total investment of over $2,200.
This purchase follows a prearranged trading plan, known as a 10b5-1(c) plan, which Mr. Zint had adopted on December 11, 2023. Such plans allow company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information. This enables them to avoid potential accusations of insider trading.
Following this acquisition, the CFO's ownership in Deluxe Corp has increased to a total of 11,584 shares. Deluxe Corp, headquartered in Minneapolis, Minnesota, operates within the manufacturing sector, specializing in products such as blank books, looseleaf binders, and bookbinding and related work.
Investors often keep a close eye on insider transactions as they may provide insights into the executive's confidence in the company's future performance. Deluxe Corp's shares are publicly traded on the New York Stock Exchange under the ticker symbol DLX.
The transaction was officially filed with the Securities and Exchange Commission on September 13, 2024, the day after the purchase was made.
In other recent news, Deluxe Corporation disclosed mixed results in its Q2 2024 financial report, but maintained its full-year guidance. Despite a 5.9% decrease in total revenue, which stood at $538 million, the company reported a GAAP net income of $20.5 million and adjusted EBITDA of $101.8 million. Notably, the company's Merchant Services segment saw growth, while the B2B Payments and Print segments experienced declines.
In addition to financial updates, Deluxe Corporation announced the resignation of its Principal Accounting Officer, Chad P. Kurth. A successor has not yet been named. These recent developments follow the company's appointment of Angela L. Brown to its Board of Directors, a move expected to contribute significantly to Deluxe's merchant services expansion.
Deluxe Corporation's North Star operating plan, aimed at significantly enhancing profitability by 2026, is in progress. However, due to economic pressures on consumer spending, the company has revised its revenue expectations slightly downward. The full-year guidance for adjusted EBITDA remains between $400 million and $420 million, with an adjusted EPS forecast between $3.10 and $3.40. These are among the recent developments in Deluxe Corporation.
InvestingPro Insights
Deluxe Corp's recent insider transaction has sparked interest among investors, and a closer look at the company's financials through InvestingPro provides a deeper understanding of its current market position. As of the last twelve months leading up to Q2 2024, Deluxe Corp has a market capitalization of $877.15 million, reflecting its valuation in the market. The company's price-to-earnings (P/E) ratio stands at 22.77, while an adjusted P/E ratio for the same period shows a more favorable figure of 11.51, suggesting that the stock may be undervalued based on its earnings.
One of the strengths highlighted by the InvestingPro Tips is Deluxe Corp's impressive gross profit margin, which is reported at 53.87% for the last twelve months as of Q2 2024. This indicates a strong ability to control costs and generate revenue from its sales. Additionally, the company's commitment to returning value to shareholders is evident, as it has a high shareholder yield and a track record of maintaining dividend payments for 54 consecutive years. The dividend yield as of late 2024 stands at a significant 6.27%.
While revenue has seen a slight decline of 3.94% over the last twelve months, the company's net income is expected to grow this year, as per InvestingPro Tips. Investors considering Deluxe Corp should also note that analysts predict the company will be profitable this year, which is corroborated by the fact that it has been profitable over the last twelve months.
For those interested in further analysis, there are additional InvestingPro Tips available that provide more nuanced insights into Deluxe Corp's financial health and future prospects. Visit https://www.investing.com/pro/DLX for more detailed information and to access the full list of tips.
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