Sumner J. Waring III, the Senior Vice President and Chief Operating Officer of Service Corp International (NYSE:SCI), has recently sold a significant portion of his stock holdings. According to a Form 4 filing with the Securities and Exchange Commission, Waring sold 36,100 shares of common stock on November 6, 2024, at an average price of $86.5875 per share, totaling approximately $3.1 million.
This sale followed Waring's exercise of employee stock options to acquire 36,100 shares at a price of $50.82 per share, which involved transactions valued at approximately $1.8 million. After these transactions, Waring holds 289,400 shares directly, with an additional 6,991 shares held indirectly through a 401(k) plan.
Service Corp International, headquartered in Houston, Texas, operates in the personal services industry, providing funeral and cemetery services.
In other recent news, Service Corporation International (NYSE:SCI) demonstrated solid growth in its third quarter of 2024, reporting a slight increase in adjusted earnings per share (EPS) to $0.79, from $0.78 in the prior year. The company also highlighted significant investments, including $123 million in acquisitions and $31 million in real estate for future expansion. SCI's adjusted operating cash flow grew by 18% year-over-year, and the company expects an adjusted EPS of $1 to $1.10 for the fourth quarter and an 8% to 12% annual EPS growth in 2025.
In addition to these financial highlights, SCI issued an $800 million note at 5.75% to refinance debt and maintain liquidity at $1.5 billion. The company also returned nearly $65 million to shareholders through dividends and share repurchases. Despite a 1% decline in core funeral volume and minor financial headwinds due to hurricanes in Western Florida, SCI remains optimistic about future volume trends and acquisition opportunities.
These developments are part of SCI's strategy focused on acquisitions and growth initiatives, and the company's management remains confident in its ability to deliver value to shareholders. Investors can expect further updates on the company's performance and strategic initiatives during the next earnings call.
InvestingPro Insights
The recent stock sale by Sumner J. Waring III comes at a time when Service Corp International (NYSE:SCI) is experiencing strong market performance. According to InvestingPro data, SCI's stock is trading near its 52-week high, with a robust 51.02% price total return over the past year. This aligns with the company's consistent dividend growth, having raised its dividend for 10 consecutive years, as noted in an InvestingPro Tip.
The company's financial health appears solid, with a market capitalization of $12.45 billion and a revenue of $4.15 billion over the last twelve months as of Q3 2024. SCI's profitability is evident, with an operating income margin of 21.73% during the same period. These figures suggest that the company's core business of funeral and cemetery services remains strong.
However, investors should be aware that SCI is trading at a relatively high P/E ratio of 24.69, which an InvestingPro Tip indicates is high relative to near-term earnings growth. This valuation metric, coupled with the stock's recent strong performance, may explain why insiders like Waring are taking the opportunity to realize gains.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips for SCI, providing a more comprehensive view of the company's financial position and market outlook.
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