Stephen D. Westhoven, President and CEO of New Jersey Resources Corp (NYSE:NJR), has sold a significant portion of his company stock, according to recent filings. The transactions, which took place on July 12 and July 16, involved the sale of 30,000 shares at prices ranging from $45.00 to $45.0581, totaling over $1.35 million.
The first transaction on July 12 saw the CEO sell 3,400 shares at a price of $45.00 per share. A few days later, on July 16, Westhoven sold an additional 26,600 shares. The latter sale was executed at a weighted average price of $45.0581, with individual sales ranging between $45.0001 and $45.1095. The exact breakdown of these sales at varying prices can be provided upon request, as noted in the footnotes of the filing.
It's important to note that these sales were conducted under a Rule 10b5-1 trading plan, which was established on February 23, 2024. Such plans allow company insiders to set up predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information, thereby providing a defense against potential accusations of insider trading.
Following these transactions, Westhoven still holds a substantial amount of New Jersey Resources stock, with 168,705.229 shares remaining in his direct ownership. The sales represent a routine part of his investment strategy and are publicly disclosed in compliance with SEC regulations.
Investors often monitor insider trading activity for insights into a company's health and the confidence that executives have in their firm's future. However, it's also common for executives to sell portions of their holdings for personal financial planning, diversification, or other non-company related reasons.
New Jersey Resources Corp, headquartered in Wall, New Jersey, is engaged in the natural gas distribution business. The company's stock is traded on the New York Stock Exchange under the ticker symbol NJR.
The transactions were officially filed with the SEC and are now part of the public record for shareholders and potential investors to review.
In other recent news, New Jersey Resources Corporation has reported significant growth in the fiscal 2024 second quarter, with net financial earnings of $1.41 per share. The company has maintained its full-year earnings guidance of $2.85 to $3 per share, demonstrating a stable financial performance. In addition, the company has updated its corporate bylaws, refining the process for shareholder director nominations and clarifying the role of the Chair at shareholder meetings.
These recent developments also include strong customer growth and utility margin improvements, with a base rate case filed to recover approximately $850 million in capital investments. The firm's Clean Energy Ventures division is also showing growth potential, with 34 megawatts of projects under construction and a solar pipeline of over 870 megawatts.
CEO Steve Westhoven has expressed optimism about future expansion opportunities, particularly at Leaf River, emphasizing the importance of infrastructure development to meet growing energy demands. The company's adjusted funds from operations to adjusted debt ratio is projected to be between 17% and 18% for the year. Lastly, the company's fiscal year will continue to end on September 30, as previously established.
InvestingPro Insights
Amidst the news of New Jersey Resources Corp (NYSE:NJR) CEO Stephen D. Westhoven's recent stock sales, investors are keen on understanding the financial health and future prospects of the company. To provide additional context, here are some insights derived from InvestingPro's real-time metrics and expert analysis.
The company's market capitalization stands at $4.52 billion, reflecting its position in the industry. Despite a notable decline in revenue over the last twelve months as of Q2 2024, with a decrease of 35.93%, New Jersey Resources has maintained a gross profit margin of 34.98%, indicating its ability to manage direct costs effectively. Additionally, the company has demonstrated a solid operating income margin of 21.8% during the same period.
From an investment standpoint, NJR's P/E ratio is currently 17.89, with a slight uptick to 18.12 when adjusted for the last twelve months as of Q2 2024. This valuation metric suggests that the stock is being traded at a price relatively close to its earnings, which could be appealing to value-oriented investors.
One of the notable InvestingPro Tips for New Jersey Resources is its impressive history of dividend reliability. The company has raised its dividend for 28 consecutive years, and remarkably, has maintained dividend payments for 54 consecutive years. This track record is a testament to NJR's commitment to shareholder returns and could be a reassuring sign for income-focused investors. Additionally, the company's stock is trading near its 52-week high, indicating a strong recent performance in the market.
For those interested in deeper analysis, there are additional InvestingPro Tips available, which can be accessed at Investing.com/pro/NJR. And for a limited time, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to gain access to exclusive insights that could further inform your investment decisions.
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