In a recent transaction, Matthew T. Ratajczak, the Vice President of Global Tax and Treasurer at RPM International Inc. (NYSE:RPM), sold 3,156 shares of the company's common stock. The transaction, which took place on October 7, 2024, resulted in a total sale value of approximately $406,341, with the shares being sold at an average weighted price of $128.752.
The shares were reportedly sold at varying prices within a narrow range of $128.75 to $128.775. The specific number of shares sold at each price point has not been disclosed, but the executive has agreed to provide full details upon request from the SEC, the issuer, or a security holder of the issuer.
Following the sale, Ratajczak still holds a substantial number of shares in the company. His remaining direct ownership includes 21,183 shares of RPM International's common stock. This total includes an aggregate of shares acquired through various equity and incentive plans associated with the company. Specifically, it encompasses 3,691 shares issued under the RPM International Inc. 2014 Omnibus Equity and Incentive Plan, vested restricted shares, and shares held in escrow pending the executive's retirement, among others.
The sale was executed as part of a planned trading schedule, and the transaction was duly reported in compliance with SEC regulations. RPM International Inc. is known for its products in the paints, varnishes, lacquers, enamels, and allied products industry, with a strong presence in industrial applications and services.
Investors and market watchers often keep a close eye on insider transactions as they may provide insights into an executive's perspective on the company's current valuation and future prospects.
In other recent news, RPM International Inc., a global leader in specialty coatings and sealants, has seen a flurry of developments. The company recently reported a 2.1% decline in sales for fiscal first quarter 2025, but a notable 12.2% rise in adjusted earnings per share (EPS) to $1.84, marking the 11th consecutive quarter of record adjusted EBIT. RPM also repaid $75 million in debt, reducing interest expenses.
In addition, RPM announced a transition in its legal department leadership, with Tracy D. Crandall stepping into the role of vice president, general counsel, and chief compliance officer. Edward W. Moore, who has been instrumental in RPM's growth from $3 billion to over $7 billion in revenue, is set to retire by the end of 2024.
RPM also declared a 10.9% increase in its quarterly cash dividend to $0.51 per share, marking the 51st consecutive year of dividend raises. Furthermore, shareholders approved a proposal to phase out the classification of the Board of Directors over the next three annual meetings.
These recent developments underscore RPM International's strategic focus and resilience, despite facing external challenges such as Hurricane Helene and foreign exchange headwinds. The company's full-year guidance remains steady with low single-digit sales growth and mid-single-digit adjusted EBIT increases.
InvestingPro Insights
To complement the recent insider transaction at RPM International Inc. (NYSE:RPM), InvestingPro data offers additional context for investors. As of the latest available data, RPM boasts a market capitalization of $16.67 billion, reflecting its significant presence in the specialty chemicals sector.
The company's P/E ratio stands at 27.09, indicating that investors are willing to pay a premium for RPM's earnings. This valuation is further supported by the company's strong financial performance, with revenue reaching $7.29 billion in the last twelve months as of Q1 2025.
InvestingPro Tips highlight RPM's commitment to shareholder returns, noting that the company "has raised its dividend for 11 consecutive years" and "has maintained dividend payments for 52 consecutive years." This long-standing dividend history aligns with the current dividend yield of 1.58%, which may be attractive to income-focused investors.
The recent insider sale by Matthew T. Ratajczak occurred at a time when RPM's stock was trading near its 52-week high, with the price at 99.45% of its peak. This is consistent with another InvestingPro Tip indicating that RPM has shown a "significant return over the last week" and a "strong return over the last three months," with the 3-month price total return standing at an impressive 21.85%.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on RPM, providing a deeper understanding of the company's financial health and market position.
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