In a recent transaction, Sarcevic Ademir, the Vice President, CFO, and Treasurer of Standex International Corp (NYSE:SXI), sold 3,800 shares of the company. The shares were sold at a weighted average price of $181.64, totaling approximately $690,250. This sale leaves Ademir with 19,686 shares of Standex International. The shares were sold in multiple transactions at prices ranging from $181.50 to $182.20.
In other recent news, Standex International Corporation experienced a 7.7% dip in fiscal first quarter sales of 2025, recording a total revenue of $170.5 million. Despite this, the company maintained a robust gross margin above 40% and an operating margin near 16%. Standex recently announced the acquisition of Amran Instrument Transformers and Narayan Powertech, a strategic move anticipated to immediately enhance various financial metrics and expand the company's reach in rapidly growing markets.
The acquisition, valued at $462 million, is projected to increase revenue, EBITDA margin, operating margin, earnings per share, and free cash flow. Standex anticipates an uptick in second-quarter revenue owing to this acquisition and stabilizing market demand. The company is also set to introduce new products across all business sectors in fiscal year 2025.
Standex expects the newly acquired Amran/Narayan Group to generate approximately $100 million in revenue in 2024, with an adjusted EBITDA margin exceeding 40%. The company, focusing on debt repayment, aims to elevate operating margins and gross margins to the mid-20% range in the near future. Management foresees mid-teens growth for the Amran/Narayan Group in the next 3 to 5 years, bolstering Standex's position in the market.
InvestingPro Insights
As Standex International Corp's (NYSE:SXI) Vice President, CFO, and Treasurer Sarcevic Ademir reduces his stake, investors might be curious about the company's financial health and market position. According to InvestingPro data, Standex International has a market capitalization of $2.24 billion and is trading at a P/E ratio of 29.74, suggesting a relatively high valuation compared to its earnings.
Despite the recent insider sale, there are positive indicators for the company. An InvestingPro Tip highlights that Standex International has maintained dividend payments for an impressive 54 consecutive years, demonstrating a strong commitment to shareholder returns. This is further supported by the company's dividend growth of 14.29% over the last twelve months, although the current dividend yield stands at a modest 0.69%.
Another InvestingPro Tip reveals that the company operates with a moderate level of debt, which is a positive sign for financial stability. This is particularly important in the current economic climate, as it suggests Standex International may be well-positioned to weather potential market volatility.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into Standex International's financial outlook and market position.
The company's financial performance shows mixed signals. While revenue for the last twelve months as of Q1 2025 was $706.33 million, it experienced a revenue decline of 5.22% over the same period. However, Standex International maintains a healthy gross profit margin of 39.56% and an operating income margin of 15.61%, indicating efficient operations despite the revenue challenges.
It's worth noting that Standex International's stock has shown strong performance, with a one-year price total return of 35.15% as of the latest data. This outperformance might explain the high P/E ratio and could be a factor in the insider's decision to sell some shares.
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