ST. PAUL, MN - In a recent transaction, Donald Zurbay, President and CEO of Patterson Companies, Inc. (NASDAQ:PDCO), sold 7,216 shares of the company's common stock at a price of $24.99 per share, resulting in a total sale value of $180,327. The sale was executed on July 16, 2024, as indicated in a filing with the Securities and Exchange Commission.
Patterson Companies, known for its distribution of dental and animal health products, has seen its stock price fluctuate in recent months. The transaction by Zurbay was carried out according to a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan for buying or selling stocks at a specified time.
Following the sale, Zurbay still holds a substantial number of shares in the company. According to the filing, he directly owns 230,072 shares, which includes an aggregate of 144,455 restricted stock units awarded under the company's Amended and Restated 2015 Omnibus Incentive Plan. These RSUs are set to vest over the next few years contingent upon continued employment.
In addition to his direct holdings, Zurbay's Employee Stock Ownership Plan (ESOP) account indirectly holds 1,198 shares of common stock. The CEO's total holdings reflect his ongoing stake in the company's future performance.
The same filing also disclosed Zurbay's ownership of various employee stock options with varying exercise prices and expiration dates, granted under the company's incentive plan. These options represent additional potential future ownership of common stock, should Zurbay choose to exercise them.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's valuation and future prospects. While such sales are not necessarily indicative of a company's direction, they are a piece of the broader picture that investors consider when evaluating their holdings.
Patterson Companies, Inc. has not issued any official statement regarding the transaction, and the stock sale appears to be part of Zurbay's personal financial planning strategy. The company continues to operate as a key player in the wholesale distribution of dental, veterinary, and rehabilitation supplies.
In other recent news, Patterson Companies has demonstrated modest growth in its fourth-quarter fiscal earnings, despite challenges from a cybersecurity attack. The company's adjusted earnings per share (EPS) for the quarter stood at $0.82, with a full-year figure of $2.30, and an internal sales growth of 1%. Looking ahead to fiscal 2025, Patterson Companies predicts an EPS in the range of $2.33 to $2.43.
Meanwhile, Goldman Sachs (NYSE:GS) maintained a Neutral rating on Patterson Companies stock, recognizing the company's supportive valuation despite challenging market conditions, particularly in the dental sector. The firm's analysis noted that Patterson Companies exceeded consensus estimates by 2% in its fourth fiscal quarter, even after accounting for the impact of the cybersecurity incident.
In addition to these financial developments, Patterson Companies reported gains in market share through expanded group practice relationships and improved profitability in the Animal Health segment. The company also highlighted strategic investments in Patterson CarePay+, Second Opinion, and the acquisitions of DairyTech, RSVP, and ACT. These recent developments underscore Patterson Companies' steady approach to navigating future challenges.
InvestingPro Insights
In light of the recent insider transaction at Patterson Companies, Inc. (NASDAQ:PDCO), it's worth noting that the company's management has been actively involved in share buybacks, signaling confidence in the company's value. This aligns with the InvestingPro Tip highlighting aggressive share repurchase efforts by the management, which could be a positive sign for investors looking at the long-term commitment of the leadership to the company's stock.
Patterson Companies is also recognized for its high shareholder yield, which is reflective of its commitment to returning value to its investors. This is further substantiated by the company's track record of maintaining dividend payments for 15 consecutive years, a testament to its financial resilience and consistent performance.
From a financial standpoint, Patterson Companies boasts a market capitalization of $2.22 billion, with a P/E ratio of 12.64, slightly adjusted to 11.98 for the last twelve months as of Q4 2024. The company's revenue for the same period stands at $6.57 billion, indicating a modest year-over-year growth of 1.5%. Moreover, the company's dividend yield as of the specified date stands at an attractive 4.2%, which could be appealing for income-focused investors.
For investors seeking a deeper analysis and more InvestingPro Tips on Patterson Companies, including insights on earnings revisions and profitability predictions, they can explore further at https://www.investing.com/pro/PDCO. There are 6 additional InvestingPro Tips available, which could provide valuable guidance in making informed investment decisions. Additionally, users can take advantage of the special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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