Kirby Corp (NYSE:KEX) Vice President and Controller, Ronald A. Dragg, has sold 1,398 shares of the company's common stock, totaling over $160,000. The transaction took place on August 28, 2024, with the shares being sold at a price of $118 each.
The sale was disclosed in a regulatory filing with the Securities and Exchange Commission. Following the sale, Dragg's ownership in the company stands at 7,683 shares of common stock, which are directly held.
Kirby Corp, with its headquarters in Houston, Texas, operates in the water transportation industry. The company's stock is traded under the ticker symbol KEX on the New York Stock Exchange.
Investors often monitor the buying and selling activities of a company's executives as they can provide insights into the insider's view of the company's value. The sale by Dragg represents a significant transaction, and it may be of interest to shareholders and potential investors tracking the company's stock performance and insider transactions.
As of the date of the transaction, the stock price of Kirby Corp was set at $118 per share, making the total value of the shares sold by Dragg over $160,000. The specifics of these transactions provide a clearer picture of the executive's stake in the company following the sale.
Kirby Corp has not issued any statement regarding the transaction, and it is common for executives to buy or sell shares for reasons that may not necessarily reflect their outlook on the company's future performance. As such, investors should consider a range of factors when assessing the significance of insider transactions.
The filings with the SEC are a routine part of disclosure requirements for company executives and are publicly available for investor review. Ronald A. Dragg's recent transaction is now part of this ongoing record of insider trading activity.
In other recent news, Kirby Corporation released its Q2 2024 results, indicating a significant rise in earnings per share (EPS) to $1.43 from $0.95 in the same quarter of the previous year. Despite weather-related and navigational challenges, the company saw substantial growth in its inland and coastal revenues. The firm also reported stable demand with growth in revenue and operating income in its Distribution and Services segment, and a 9% year-over-year increase in power generation revenues.
On the other hand, oil and gas revenues saw a year-over-year decline of 33%, but sequentially increased by 22%. Kirby Corporation anticipates year-over-year earnings growth to be at the high end of the 30% to 40% range and expects to generate between $300 million and $350 million of free cash flow in 2024. Despite the impact of Hurricane Beryl, the company projects improving marine market conditions with strong demand and pricing gains.
In terms of future expectations, the company forecasts high-end year-over-year earnings growth within the original 30% to 40% guidance for 2024. It also plans capital expenditures between $300 million and $330 million, with a projected free cash flow for 2024 between $300 million and $350 million. The company expects demand for power generation products and services to increase, while the oil and gas sector is expected to stabilize. These are the recent developments from Kirby Corporation.
InvestingPro Insights
Analyzing the recent insider sale at Kirby Corp (NYSE:KEX), it's valuable to look at the company's performance through the lens of InvestingPro metrics and tips. As of the last twelve months leading up to Q2 2024, Kirby Corp has demonstrated a solid financial footing with revenue growth of 6.41% and an impressive EBITDA growth of 34.24%. The company's operating income margin stood at 12.92%, reflecting efficient management of its operations.
InvestingPro Tips indicate that Kirby Corp is trading at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 25.01 and an adjusted P/E ratio for the last twelve months at 24.77. This could suggest that the stock is undervalued considering its earnings potential. Additionally, analysts are optimistic about the company's profitability, predicting Kirby Corp will be profitable this year, and it has indeed been profitable over the last twelve months. Furthermore, Kirby Corp's liquid assets exceed its short-term obligations, indicating a strong liquidity position.
The company has also experienced a large price uptick over the last six months, with a 34.3% return, and year-to-date, the price total return has skyrocketed to 50.11%. This positive momentum is reflected in the stock price nearing 90.71% of its 52-week high. With a fair value estimate by analysts at $137 and the InvestingPro fair value at $120.23, there appears to be potential room for growth.
While insider sales can be influenced by a variety of personal factors, InvestingPro offers additional insights into Kirby Corp’s stock performance and financial health. There are currently 7 additional tips listed on InvestingPro for Kirby Corp, which can provide investors with a more comprehensive understanding of the company's outlook. For those interested in delving deeper, these can be accessed at https://www.investing.com/pro/KEX.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.