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Ingredion CEO sells over $533k in company stock

Published 2024-08-30, 09:58 a/m
INGR
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In a recent transaction, James P. Zallie, President and CEO of Ingredion Inc (NYSE:INGR), sold 3,981 shares of the company's stock, yielding a total of over $533,000. The sale, which took place on August 29, 2024, was executed at weighted average prices ranging from $134.000 to $134.090 per share.

On the same day, Zallie also acquired 3,981 shares of Ingredion stock at a price of $99.96 per share, amounting to nearly $398,000. This acquisition was part of an exercised employee stock option that vested in three equal annual installments from 2017 to 2019.

The transactions were conducted under a Rule 10b5-1 trading plan, which Zallie had adopted on May 4, 2023. Such plans allow company insiders to establish pre-planned transactions to sell a predetermined number of shares at a specified time. This is typically done to avoid any accusations of insider trading, as the trades are scheduled to occur regardless of any non-public information the insider might possess.

Following the sale, Zallie's direct holdings in Ingredion decreased slightly, but he still maintains a significant stake in the company. The exact number of shares sold at each price point within the range has not been disclosed, but Zallie has committed to providing full information upon request.

Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is important to note that these transactions do not necessarily indicate a lack of confidence in the company but can often be part of personal financial planning strategies.

Ingredion Incorporated, headquartered in Westchester, Illinois, specializes in producing grain-based products and operates under the Industrial Classification of Grain Mill Products.

In other recent news, Ingredion Incorporated has been the subject of positive analyst attention. Barclays (LON:BARC) upgraded Ingredion's stock from Equalweight to Overweight, setting a new price target at $145.00, following an approximate 5% increase in the company's adjusted EPS guidance for the fiscal year 2024. BMO (TSX:BMO) Capital Markets also adjusted its outlook on Ingredion by increasing the price target to $128 from the previous $120, after the company reported better-than-expected Q2 2024 earnings per share of $2.87.

Ingredion's second quarter of 2024 earnings release revealed a robust financial performance, with the company surpassing consensus estimates and experiencing a notable volume growth of 5% year-over-year. The company has revised its EPS guidance for the year 2024 upwards to a range of $9.70 to $10.20, reflecting the positive momentum from the first half of the year.

Barclays anticipates that Ingredion's performance will continue to improve in the second half of 2024 and into early 2025, driven by expected volume recovery and ongoing cost savings initiatives. The firm also sees a promising future for Ingredion's Texture & Healthful Solutions segment, which is projected to experience margin growth as the company's investments in capacity expansion begin to yield results.

The company's Q2 results also showed an 8% increase in adjusted operating income and a notable improvement in gross margins by 240 basis points, despite a 9% decline in sales. Ingredion is making significant strides in sustainability, achieving a 22% reduction in global emissions and increased sustainable sourcing. Analysts note that the company's strategic initiatives are aimed at improving financial outcomes.

InvestingPro Insights

As Ingredion Inc (NYSE:INGR) continues to navigate the market, certain metrics and InvestingPro Tips shed light on its financial health and stock performance. With a market capitalization of $8.71 billion, the company's valuation reflects its position in the industry. The P/E ratio, a key indicator of a stock's value, stands at 13.45, suggesting that Ingredion is trading at a low earnings multiple which can be attractive to value investors. Additionally, the company's dividend yield is currently at 2.4%, underlining its commitment to returning value to shareholders, as evidenced by a 27-year streak of maintained dividend payments.

InvestingPro Tips highlight Ingredion's strong shareholder yield and consistent dividend growth, with a 12.68% increase in dividends over the last twelve months as of Q2 2024. These factors are particularly relevant for investors seeking stable income through dividends. Moreover, Ingredion's stock is trading near its 52-week high, with a price only 0.5% below this peak, and has experienced a notable return of 33.64% over the past year, indicating robust performance in the stock market.

For those interested in further insights, there are additional InvestingPro Tips available for Ingredion Inc. These tips provide deeper analysis and can be a valuable resource for investors looking to make informed decisions. Visit InvestingPro for a comprehensive list of tips and metrics at https://www.investing.com/pro/INGR.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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