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Clearfield chairman Ronald Roth acquires $155k in stock

Published 2024-12-06, 11:34 a/m
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Ronald G. Roth, Chairman of the Board of Clearfield , Inc. (NASDAQ:CLFD), has increased his stake in the company by purchasing 5,000 shares of common stock. The shares were acquired at a weighted average price of $31.00 per share, totaling approximately $155,000. According to InvestingPro data, this insider purchase comes as the stock trades near its Fair Value, with the company maintaining a strong balance sheet with more cash than debt. Following this transaction, Roth directly owns 1,266,796 shares. Additionally, Roth holds 176,760 shares indirectly, which are owned by his spouse. This move reflects continued confidence in Clearfield's prospects as the company navigates the telecommunications equipment market. The company maintains a healthy current ratio of 9.43x and has demonstrated strong cash flow generation despite recent market challenges. InvestingPro subscribers can access 8 additional key insights about Clearfield's financial health and market position in the comprehensive Pro Research Report.

In other recent news, Clearfield Inc. announced a decrease in consolidated net sales for both the fourth quarter and the full fiscal year of 2024. The fourth-quarter consolidated net sales were $46.8 million, a 6% decrease from the previous year, while full-year consolidated net sales declined by 38% to $166.7 million. However, the company generated positive cash flow from operations and launched new products aimed at reducing deployment costs and time.

Clearfield has adopted a new Performance Stock Unit Award Agreement as part of its 2022 Stock Compensation Plan. This plan aims to incentivize executive officers through performance-based stock units (PSUs) that will vest over a multi-year period, contingent on achieving specific performance goals set by the Compensation Committee.

In addition, Clearfield's Board of Directors has appointed Deloitte & Touche LLP as its new auditor following a competitive evaluation process. This strategic move does not reflect any disagreements or reportable events between Clearfield and its previous auditor, Baker Tilly.

Looking ahead, Clearfield expects revenues of $170 million to $185 million for fiscal year 2025, with Q1 net sales estimated between $33 million and $38 million. Analysts note that Clearfield's focus on business investment and product innovation suggests potential for growth, especially in rural broadband supported by public and private funding. The company also anticipates significant demand driven by the BEAD program in 2026.

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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