Crown Holdings, Inc. (NYSE:CCK) reported that its President and CEO, Timothy J. Donahue, sold 7,500 shares of company stock on October 7, 2024, for a total value of $697,500. The transaction took place at a price of $93.00 per share. Following the sale, Donahue's direct holdings in the company amounted to 571,178 shares.
The sale was executed under a 10b5-1(c) trading plan, which was adopted on September 8, 2023. These plans allow corporate insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.
In addition to his direct holdings, as of September 30, 2024, Donahue owned an additional 769 shares of Crown Holdings common stock indirectly through the company's 401(k) plan.
Crown Holdings, with its headquarters in Tampa, Florida, is a leader in the metal packaging industry, providing packaging solutions for consumer marketing companies around the world. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol CCK.
The transaction was documented by Rosemary Haselroth, by Power of Attorney, and filed with the Securities and Exchange Commission.
In other recent news, Crown Holdings exceeded Q2 expectations with earnings per share increasing from $1.31 to $1.45 and net sales reaching $3 billion, driven by a 6% rise in global beverage can volumes. The company has updated its full-year EPS guidance to a range of $6.00 to $6.25, indicating a year-over-year growth of about 4.6%. Crown Holdings' subsidiary, Crown European Holdings S.A., issued €600 million in senior unsecured notes to refinance existing debt, carrying a 4.5% interest rate and due in 2030. The company also initiated a stock repurchase program of up to $2 billion by the end of 2027.
In a significant move, Crown Holdings entered into an agreement with Massachusetts Mutual Life Insurance Company (MassMutual) to purchase a group annuity contract, eliminating around $740 million in US pension plan assets and liabilities. RBC Capital maintained an Outperform rating on Crown Holdings, highlighting the company's potential to surpass market growth and its anticipated financial gains to support share buybacks. The firm also noted Crown Holdings' active reduction of debt, known as deleveraging, which could potentially lead to an increase in stock value. These are some of the recent developments for Crown Holdings.
InvestingPro Insights
Crown Holdings, Inc. (NYSE:CCK) has shown strong performance recently, with InvestingPro data indicating a 31.5% price total return over the past three months. This aligns with the recent insider sale by CEO Timothy J. Donahue, as executives often sell shares when they believe the stock price is favorable.
InvestingPro Tips highlight that Crown Holdings has raised its dividend for 3 consecutive years, demonstrating a commitment to shareholder returns. The company's dividend yield stands at 1.07%, with a dividend growth rate of 4.17% over the last twelve months.
Despite the recent stock sale by the CEO, Crown Holdings appears to be in a solid financial position. The company's market capitalization is $11.04 billion, and it has been profitable over the last twelve months. Additionally, analysts predict the company will remain profitable this year, which could provide further support for the stock price.
For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips for Crown Holdings, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.