Tulsa, OK – Williams Companies, Inc. (NYSE:WMB) Senior Vice President Larry C. Larsen recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Larsen sold 6,684 shares of common stock on November 8, 2024, at a price of $56.48 per share. The total value of the transaction amounted to approximately $377,512.
Following this sale, Larsen retains ownership of 74,393 shares in Williams Companies. The transaction was executed directly, reflecting a reduction in his stake in the natural gas transmission company, which is based in Tulsa, Oklahoma.
In other recent news, Williams Companies has seen a flurry of activity. The energy company was upgraded from Hold to Buy by CFRA, which also increased its price target to $62. The company's third-quarter earnings per share stood at $0.43, surpassing the consensus by $0.02, and its adjusted EBITDA showed a year-over-year increase of 3%. This led to an upward revision of its 2024 EBITDA guidance to between $7.0 billion and $7.15 billion.
In addition, Williams Companies announced a partnership with Lakeland Electric for a 75-megawatt solar farm and reported third-quarter revenues of $1.7 billion, an increase from the previous year. The company's performance was primarily driven by expansions in natural gas transportation and strategic acquisitions, including Gulf Coast Storage.
Despite challenges from low natural gas prices and hurricane impacts, the company demonstrated resilience with a 22.9% return on invested capital from 2018 to 2023. Williams Companies also reaffirmed its 2025 financial guidance, with an updated leverage guidance from 3.85x to 3.8x. These developments underscore the company's robust growth and its ability to navigate a challenging market environment.
InvestingPro Insights
The recent stock sale by Williams Companies' Senior Vice President Larry C. Larsen comes at a time when the company's shares are trading near their 52-week high, according to InvestingPro data. This timing aligns with the stock's strong performance, as WMB has seen a remarkable 71.11% total return over the past year.
InvestingPro Tips highlight that Williams Companies has maintained dividend payments for an impressive 51 consecutive years, demonstrating a commitment to shareholder returns. This long-standing dividend history, coupled with a current dividend yield of 3.34%, may be attractive to income-focused investors.
However, it's worth noting that the stock's P/E ratio of 27.7 (adjusted for the last twelve months) suggests a relatively high valuation compared to its near-term earnings growth. This valuation metric, along with the fact that the stock is trading at a high Price / Book multiple of 5.6, could provide context for why an insider might choose to sell shares at this time.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Williams Companies, providing a deeper understanding of the company's financial health and market position.
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