Core & Main, Inc. (NYSE:CNM) reported a significant transaction by one of its top executives in a recent filing. John Weldon Stephens, the company's Chief Accounting Officer, sold 9,497 shares of Class A Common Stock on April 23, 2024. The shares were sold at a weighted average price of $55.1888, ranging from $55.0000 to $55.4400 per share, totaling approximately $524,128.
This transaction followed an equivalent number of shares being acquired by Stephens on the same day through the exchange of Class B common stock and limited partnership interests for Class A common stock on a one-for-one basis. The exchange was made under the terms of an agreement dated July 22, 2021, as amended.
Following the sale, Stephens still owns 4,281 shares in the form of restricted stock units (RSUs), which are set to vest on future dates ranging from March 2025 to March 2027, subject to the terms of the associated agreements.
The sale was conducted in accordance with a pre-arranged Rule 10b5-1 trading plan, which Stephens had adopted on December 19, 2023. This plan allows company insiders to sell shares at predetermined times to avoid any accusations of trading on non-public, material information.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's future prospects. In this case, Stephens' sale represents a notable change in his holdings, although he continues to maintain a stake in the company through his RSUs.
Core & Main, Inc., headquartered in St. Louis, Missouri, operates as a wholesale distributor of durable goods, and its stock is publicly traded under the ticker symbol CNM on the New York Stock Exchange.
InvestingPro Insights
Core & Main, Inc. (NYSE:CNM) has recently been in the spotlight with insider transactions and stock performance drawing investor attention. Here are some insights from InvestingPro that could help investors make informed decisions:
The company is currently trading at a high Price/Earnings (P/E) ratio of 26.07, which suggests that investors are expecting higher earnings growth in the future. This is further substantiated by the adjusted P/E ratio for the last twelve months as of Q4 2024, which stands at 28.86. However, it's worth noting that the company has been trading at a high Price/Book multiple of 7.79 during the same period, indicating that its market valuation is quite rich compared to the book value of its assets.
InvestingPro Tips highlight that Core & Main's management has been aggressively buying back shares, reflecting confidence in the company's value. Additionally, the company has had a strong return over the last year, with a 118.04% price total return, which is significant and could be appealing to investors looking for companies with robust growth trajectories.
From a financial health perspective, Core & Main operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a stable financial position. This could provide some reassurance to investors concerned about the company's ability to meet its short-term liabilities.
For those interested in further details and additional InvestingPro Tips, visit InvestingPro's full analysis of Core & Main. There are a total of 12 InvestingPro Tips available for investors seeking deeper insights. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking more valuable investment tips and data.
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