CPI Aerostructures Inc . (NYSE:CVU) Director Richard C. Rosenjack recently purchased 5,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were acquired on November 19 at a price of $3.37 each, amounting to a total transaction value of $16,850.
Following this purchase, Rosenjack holds a total of 39,711 shares, which includes 5,000 shares jointly owned with his spouse. This acquisition reflects Rosenjack's continued investment in the company, which specializes in aircraft parts and auxiliary equipment.
In other recent news, CPI Aerostructures has made several significant developments. The company's earnings and revenue saw a boost following a follow-on order worth approximately $1.3 million for welded structural assemblies from a U.S. military helicopter customer, with fulfillment anticipated by mid-2025. CPI Aerostructures has also amended its existing credit agreement, extending the maturity date to August 31, 2026, and reducing the Base Rate Margin from 3.50% to 2.0%.
The company has updated its Code of Ethics and Business Conduct, strengthening guidelines on conflict of interest, fair dealing, and confidentiality, in addition to improving the protection and proper use of company assets. This move is part of CPI Aerostructures' efforts to ensure its adherence to industry standards and best practices.
CPI Aerostructures also announced the appointment of Philip Passarello as its new Chief Financial Officer and Secretary, replacing Andrew Davis. Passarello, previously Vice President of Finance at TTM Technologies (NASDAQ:TTMI), brings extensive financial management experience to the company. In addition, CEO Dorith Hakim's annual base salary was increased by 4.8% to $385,000.
Finally, the company has entered into a Long Term Agreement with MST Manufacturing for component supply through 2027. CPI Aerostructures also transitioned to a new independent accounting firm, Marcum LLP, replacing RSM US LLP. These are some of the recent developments within the company.
InvestingPro Insights
Director Richard C. Rosenjack's recent purchase of CPI Aerostructures Inc. (NYSE:CVU) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown significant momentum, with InvestingPro data revealing a 58.7% price total return over the past year and a robust 40.93% return in the last three months. This upward trend is further supported by an InvestingPro Tip noting the company's "significant return over the last week," suggesting ongoing investor confidence.
Despite the recent stock price appreciation, CVU appears to be trading at an attractive valuation. The company's P/E ratio stands at a low 2.42, which an InvestingPro Tip describes as "trading at a low earnings multiple." This could indicate that the stock may still be undervalued relative to its earnings potential, possibly explaining Rosenjack's decision to increase his stake.
Financially, CPI Aerostructures demonstrates solid fundamentals. An InvestingPro Tip highlights that the company has been "profitable over the last twelve months," with data showing a healthy EBITDA of $6.63 million for the last twelve months as of Q3 2024. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong balance sheet position.
For investors seeking more comprehensive analysis, InvestingPro offers 6 additional tips for CPI Aerostructures, providing a deeper understanding of the company's financial health and market position.
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