Frederick D. DiSanto, a director at Eastern Co (NASDAQ:EML), has recently increased his stake in the company through several stock purchases. According to a Form 4 filing with the Securities and Exchange Commission, DiSanto acquired a total of 1,655 shares over three separate transactions on November 18, 19, and 20, 2024. The transactions were executed at prices ranging from $27.38 to $30.00 per share, amounting to a total investment of $46,387.
Following these transactions, DiSanto now directly owns 66,483 shares of Eastern Co. Additionally, he holds indirect interests in shares through Ancora Catalyst Fund LP and Ancora Merlin Fund LP, due to his role as Chairman and CEO of Ancora Alternatives LLC, the General Partner of these funds. Indirectly, he holds 43,797 and 11,970 shares in these funds, respectively.
In other recent news, Eastern Company disclosed robust third-quarter financial results alongside strategic corporate decisions. The industrial manufacturer saw a 15% rise in net sales to $71.3 million, while net income climbed to $4.7 million, translating to $0.75 per diluted share. The company also announced the appointment of a new CEO, Ryan Schroeder, and the divestiture of the Big 3 Mold business as part of its recent developments.
Eastern Company's focus on its core strengths in the commercial vehicle, automotive, and other industrial markets is set to be intensified under the new leadership. The company is also refocusing its efforts following the sale of the Big 3 Mold business.
However, despite the overall growth, the company experienced an increase in selling and administrative expenses, primarily due to higher payroll and legal costs. Additionally, the company recognized a loss of $19.2 million net of tax from the write-down of the Big 3 Mold business. Despite these challenges, Eastern Company remains poised for future growth with a new CEO at the helm and a streamlined focus on its most promising business sectors.
InvestingPro Insights
The recent insider buying by Frederick D. DiSanto aligns with several positive indicators for Eastern Co (NASDAQ:EML). According to InvestingPro data, the company's stock has shown a strong performance, with a 51.87% total return over the past year. This impressive gain suggests that DiSanto's increased investment may be based on confidence in the company's future prospects.
InvestingPro Tips highlight that Eastern Co has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns that may appeal to long-term investors like DiSanto. Additionally, the company's liquid assets exceed short-term obligations, indicating a solid financial position.
Despite the recent insider purchases occurring at prices between $27.38 and $30.00, the stock's current price of $27.35 represents a potential buying opportunity, as it's trading close to InvestingPro's calculated fair value of $27.68. The company's P/E ratio (adjusted) of 13.97 for the last twelve months as of Q3 2024 suggests a reasonable valuation relative to earnings.
It's worth noting that Eastern Co has been profitable over the last twelve months, with a revenue of $284.46 million and an EBITDA growth of 48.42% during this period. These financial metrics provide context to DiSanto's decision to increase his stake in the company.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on Eastern Co, with 5 more tips available on the platform.
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