FutureFuel Corp. (NYSE:FF) has reported that Ronald J. Kruszewski, a member of the company's board of directors, has recently made significant purchases of the company's stock, according to a Form 4 filed with the Securities and Exchange Commission.
Over a span of three days, Kruszewski acquired a total of 100,000 shares of FutureFuel's common stock. The transactions took place from June 11 to June 13, 2024, with prices ranging from $4.50 to $4.60 per share. The total investment amounted to approximately $457,912.
On June 11, the director bought 8,544 shares at $4.50 each. The following day, he added 41,098 shares to his holdings at an average weighted price between $4.56 and $4.58. The purchase on June 13 was the largest, with 50,358 shares acquired at a weighted average price ranging from $4.55 to $4.66.
The shares were bought through Kruszewski Investments, LLC, a Missouri limited liability company, as indicated in the footnotes of the SEC filing. This entity is affiliated with Kruszewski, further cementing his investment in FutureFuel.
FutureFuel Corp., based in Clayton, Missouri, operates in the industrial organic chemicals sector. The company's recent activities have attracted investor attention, and the substantial stock acquisition by a board member may be a point of interest for shareholders and potential investors alike.
Investors tend to watch insider transactions closely as they can provide insights into the company's performance and future prospects as perceived by its leaders. The recent purchases by Kruszewski could be interpreted as a sign of confidence in FutureFuel's value and direction.
As of the last transaction reported, Kruszewski's direct ownership in FutureFuel stands at 100,000 shares, reflecting a notable commitment to the company's success.
In other recent news, FutureFuel Corp. announced significant developments. The company reported a substantial rise in net income for the year ended December 31, 2023, despite a decrease in revenues to $368.3 million from $396.0 million in 2022. Net income more than doubled to $37.4 million, or $0.85 per diluted share, from $15.2 million, or $0.35 per diluted share. The company also declared a special cash dividend of $2.50 per share and initiated a share repurchase program of up to $25 million over the next 24 months.
In addition to these financial developments, FutureFuel also announced the retirement of CEO Tom McKinlay, effective September 30, 2024. The company has initiated a nationwide search for a new CEO, demonstrating its proactive approach to leadership transition.
These recent developments come as FutureFuel continues to focus on the production and sale of biodiesel and its positioning as a significant player in the chemical manufacturing sector. However, the company's forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Investors are encouraged to consult with their brokers regarding these recent developments.
InvestingPro Insights
In the wake of the recent insider purchases by board member Ronald J. Kruszewski, FutureFuel Corp. (NYSE:FF) displays a mixed financial canvas. According to InvestingPro data, the company's market capitalization currently stands at $201.75 million, with a P/E ratio of 9.73, indicating that the stock may be undervalued relative to earnings. Furthermore, the company's dividend yield is at a robust 5.21%, which is particularly appealing to income-focused investors, especially considering that FutureFuel has maintained dividend payments for 17 consecutive years.
On the performance front, the company has exhibited a strong return over the last three months, with a 18.2% price total return, suggesting a positive short-term investor sentiment. This could align with Kruszewski's recent acquisition, potentially signaling his belief in the company's continued growth or undervaluation. An InvestingPro Tip highlights that the company's liquid assets exceed short-term obligations, which may provide some assurance of financial stability.
However, challenges are evident with a notable decline in revenue growth, down by 17.66% over the last twelve months as of Q1 2024. This is coupled with a relatively weak gross profit margin of 6.66%, potentially pointing towards efficiency issues or competitive pressures in the industrial organic chemicals sector. For investors seeking a comprehensive analysis, InvestingPro offers additional tips, including insights into the company's cash flow capabilities and revenue valuation multiples.
For those considering an investment in FutureFuel, leveraging the full suite of InvestingPro Tips could be beneficial. There are 7 additional tips available, providing deeper insights into the company's financial health and market position. Interested readers can access these tips at: https://www.investing.com/pro/FF. To enhance the value of your InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.