Century Aluminum Co . (NASDAQ:CENX) President and CEO, Jesse E. Gary, has recently sold a significant amount of company stock. On June 26, Gary parted with 60,000 shares at an average price of $16.21 per share, totaling $972,600. The transactions occurred in a range of prices from $15.81 to $16.44, reflecting the diverse market conditions on the day of the sale.
Following the sale, Gary still retains 62,447 shares of Century Aluminum stock, which are held indirectly by a trust. Additionally, Gary’s total holdings include unvested stock units granted under the company's Long-Term Incentive Plans, which are not directly affected by this transaction.
The sale by the company's CEO comes as a notable transaction, given his position and insight into Century Aluminum's operations. The stock market often pays close attention to insider sales and purchases, as they can provide signals about executives’ confidence in their company's future prospects.
Investors and shareholders of Century Aluminum may consider this transaction as part of their overall assessment of the company. It is important, however, to take into account the broader context in which such sales occur, including the executive's reasons for selling and their remaining stake in the company.
Century Aluminum has not released any official statement regarding the transaction, and it remains a routine disclosure as required by SEC regulations. The details of the sale, including the specific number of shares sold at each price point, will be made available upon request to the SEC staff, the issuer, or a security holder of the issuer, as per the filing.
As the market processes this information, Century Aluminum's stock performance will continue to be influenced by a variety of factors, including overall market conditions, industry trends, and the company's operational results. Investors are advised to consider all available information when making investment decisions.
In other recent news, Century Aluminum has reported impressive first-quarter earnings for 2024, with an EBITDA of $25 million, exceeding BMO (TSX:BMO) Capital Markets and consensus estimates. The company has also provided a forecast for its second-quarter EBITDA, expecting it to range between $25 and $35 million. BMO Capital Markets has adjusted its outlook on Century Aluminum, raising the price target to $16.00 while maintaining a Market Perform rating.
Recent developments indicate the company is not expected to fully realize the benefits from the recent surge in aluminum prices until the third quarter due to lagged pricing, suggesting potential for further earnings improvement. Century Aluminum has also announced two significant growth projects, including a new casthouse and a green aluminum smelter in the US. The company's strategic acquisition of Jamalco has been beneficial, providing a captive supply of high-quality alumina and bauxite.
According to BMO Capital Markets, Century Aluminum's robust pipeline and the anticipated improvement in earnings due to higher aluminum prices have been key factors in the reassessment of the company's stock potential. The updated price target reflects a modest increase, with BMO maintaining a neutral stance on the stock's performance outlook.
InvestingPro Insights
As Century Aluminum Co. (NASDAQ:CENX) navigates through the market's ebb and flow, investors may find it valuable to consider recent financial metrics and analyst insights from InvestingPro. With a market capitalization of approximately $1.55 billion and a relatively low price-to-earnings (P/E) ratio of 6.7, the company stands out in the metals and mining sector. Despite a notable decrease in revenue over the last twelve months, with a -17.61% change, Century Aluminum's net income is expected to grow this year according to one of the InvestingPro Tips.
The company's stock price volatility is another aspect for potential investors to consider; however, this is juxtaposed with a strong return over the past year, showcasing an impressive 81.0% one-year price total return. Additionally, Century Aluminum has demonstrated a significant 25.57% price total return over the last six months. These figures suggest a robust short-term performance that may appeal to certain investment strategies.
While the company does not pay dividends, which could be a drawback for income-focused investors, the potential for capital gains might compensate for this aspect. Moreover, analysts predict that the company will be profitable this year, and it has been profitable over the last twelve months, an encouraging sign for prospective and current shareholders.
For those seeking a deeper dive into Century Aluminum's financial standing and future outlook, the InvestingPro platform offers additional insights. There are currently 9 more InvestingPro Tips available on https://www.investing.com/pro/CENX, which could further guide investment decisions. To access these valuable insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.