FORT COLLINS, CO— Woodward , Inc. (NASDAQ:WWD) Executive Vice President and Chief Operating Officer Thomas G. Cromwell recently executed a significant stock transaction, according to a recent SEC filing. On November 14, Cromwell sold a total of 7,913 shares of Woodward common stock, realizing approximately $1.39 million. The sales were made at prices ranging from $174.96 to $175.72 per share.
These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which Cromwell adopted on May 17, 2024. Following these sales, Cromwell retains direct ownership of 11,511 shares of Woodward common stock.
Additionally, Cromwell exercised options to acquire 7,913 shares of Woodward stock at a price of $104.77 per share, totaling approximately $829,045. These options were fully vested and exercisable as of October 1, 2020, with an expiration date of October 1, 2029.
This strategic move by Cromwell provides insight into the executive's management of his holdings in the company, which specializes in electrical industrial apparatus. Woodward, Inc. is headquartered in Fort Collins, Colorado, and trades on the NASDAQ under the ticker WWD.
In other recent news, Woodward Inc. reported a 6% increase in net sales in its third-quarter fiscal year 2024 earnings report, and revised its full-year sales guidance to between $3.25 billion and $3.3 billion. The company also declared a quarterly cash dividend of $0.25 per share, reflecting its financial stability and cash flow generation. In analyst assessments, TD Cowen downgraded Woodward's stock from Buy to Hold and adjusted the price target from $186.00 to $160.00 due to anticipated challenges in the aerospace sector and China's natural gas bus and truck engine market. Truist Securities, on the other hand, upgraded Woodward from "Hold" to "Buy," raising the price target to $187. UBS maintained its "Buy" rating with a steady stock target. These recent developments are based on Woodward's financial performance and the analyses of various firms. Woodward also engaged with investors and analysts in a recent webcast, demonstrating its commitment to transparency and ongoing dialogue with the investment community.
InvestingPro Insights
Woodward's recent stock performance and financial metrics provide additional context to Thomas G. Cromwell's recent stock transaction. According to InvestingPro data, Woodward's stock has shown strong performance, with a 29.24% total return over the past year and a 27.61% return year-to-date. This positive trend aligns with the timing of Cromwell's decision to exercise options and sell shares.
The company's financial health appears robust, with InvestingPro Tips highlighting that Woodward operates with a moderate level of debt and has liquid assets exceeding short-term obligations. This financial stability may have contributed to the executive's confidence in exercising options at this time.
Woodward's commitment to shareholder returns is evident from its dividend history. An InvestingPro Tip notes that the company has maintained dividend payments for 52 consecutive years, demonstrating long-term financial stability. The current dividend yield stands at 0.58%, with a notable dividend growth of 13.64% in the last twelve months.
From a valuation perspective, Woodward is trading at a P/E ratio of 25.67, which is considered low relative to its near-term earnings growth, according to another InvestingPro Tip. This suggests that the stock may be undervalued compared to its growth prospects, potentially influencing Cromwell's decision to retain a significant portion of his shares after the transaction.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 7 more tips available for Woodward, providing a deeper understanding of the company's financial position and market outlook.
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