Ingredion director gets $39.9k in stock, loses $7.6k Via Investing.com
Company Ingredion Inc (NYSE:) director Jorge A. Uribe reported a recent series of transactions in the company’s stock, according to a Form 4 filing with the Securities and Exchange Commission. Uribe received approximately $39,999 worth of stock and sold the stock to pay approximately $7,560 in taxes.
On June 28, 2024, Uribe purchased 346.7406 shares of Ingredion common stock at a price of $115.36 per share. These shares, issued as part of the annual retention of the company’s outside directors, increased his holdings to 12,705.3165 shares after the purchase. In a simultaneous move, Uribe issued 65,534 shares at the same price per share to satisfy tax obligations. Additionally, a small transaction involving the sale of fractional shares resulted in a cash payment of $23.
After this transaction, Uribe’s direct ownership in Ingredion Inc stands at 12,639.5759 shares. The filing also disclosed indirect ownership of 4,404 shares through Cafedan Investments Ltd Trust.
Investors often keep a close eye on insider trading as they can provide insight into management’s views on the company’s current valuation and future prospects. Ingredion Inc, headquartered in Westchester, Illinois, operates in the grain milling products industry and is known for its productivity in this field.
In other recent news, Ingredion Incorporated announced an increase in its EPS guidance following first quarter earnings per share (EPS) of $2.08, which slightly exceeded the consensus estimate. The correction led BMO Capital Markets to raise its price target on Ingredion shares to $120, maintaining a Market Perform rating. The company’s first-quarter performance also saw a 12% decline in net sales year-over-year, yet it reported the second-highest operating income in its history.
Ingredion has outlined plans for a $50 million cost savings plan by 2025 and expects to accelerate its stock return program. The company also announced the appointment of Dr. Michael Leonard as Senior Vice President, Chief Innovation Officer, and Head of Protein Fortification. BMO Capital analysts expressed confidence in Ingredion’s ability to reach the high end of its 2024 earnings outlook, supported by the company’s growing efficiency and the expected impact of share repurchases.
However, they noted that gains may be more pronounced in the second half of the year, as the second quarter guidance fell short of their predictions. These changes reflect recent changes in Ingredion’s financial guidance and strategic direction.
InvestingPro Insights
Following recent insider activity at Ingredion Inc (NYSE:INGR), investors can get more context with key metrics and insights from InvestingPro. The company, with its market capitalization at $7.38 billion and a strong budget record, demonstrates financial stability and commitment to shareholder returns. Notably, Ingredion has an impressive P/E ratio of 11.09, indicating a potentially undervalued stock relative to its earnings. Furthermore, the company’s PEG ratio, which stands at 0.54 over the last twelve months from Q1 2024, suggests that its stock price is modest relative to its earnings growth.
Ingredion’s commitment to its shareholders is further demonstrated by a perfect Piotroski Score of 9, indicating strong financial health, and its history of collecting dividends for 13 consecutive years, with a current yield of 2.74%. In addition to these attractive profitability metrics, Ingredion also has a high shareholder return, which is a good sign for investors looking for income through dividends and share repurchases. In addition, the company’s valuation implies a strong free cash flow yield, which strengthens its financial flexibility and ability to generate value for investors.
For those interested in a deeper dive into Ingredion’s financials and future outlook, InvestingPro offers many additional details. Currently, there are 11 more InvestingPro tips available, which can provide a more comprehensive understanding of the company’s performance and potential. To access these valuable tips, visit InvestingPro and consider using the coupon code PRONEWS24 for up to 10% off annual Pro and annual or bi-annual Pro+ subscriptions.
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