In recent transactions involving WESCO International Inc. (NYSE:WCC), Executive Vice President and General Manager of Communication and Security Solutions, Geary William Clayton, executed several stock transactions. On November 12, Clayton sold a total of 2,829 shares of common stock at prices ranging from $205.727 to $205.88 per share, amounting to a total sale value of $582,020.
Earlier, on November 8, Clayton acquired 8,321 shares through the exercise of Stock Appreciation Rights at a price of $76.8 per share, totaling $639,052. Subsequently, he disposed of 3,106 shares at $205.78 per share, totaling $639,152, and an additional 2,386 shares for the same price, amounting to $490,991, to cover tax obligations. Following these transactions, Clayton retains ownership of 35,062.9291 shares of common stock and 4,562 shares of Series A Preferred Stock.
In other recent news, WESCO International reported a slight increase in sales during its 2024 Third Quarter Earnings Call, primarily due to a 10% growth in its data center segment. The company maintained a stable adjusted EBITDA margin and reported a strong free cash flow of $280 million for the quarter. Despite challenges in the utility and broadband sectors, WESCO secured large contract awards ranging from $50 million to over $2 billion.
Oppenheimer revised its outlook on WESCO, increasing the price target to $225 from $205 and maintaining an Outperform rating. The firm attributed this to the company's Data Communications Supply Solutions (DCSS) segment, which delivered robust sales and a 28% sequential operating leverage. WESCO's DCSS segment, accounting for approximately one-fourth of the company's Cable and Security Solutions (CSS) segment, has seen growth of over 40%.
WESCO announced an agreement to acquire Ascent, a provider of data center facility management services, for $185 million. Ascent reported trailing twelve months (TTM) sales of $115 million along with a 30% compound annual growth rate (CAGR) over three years. These recent developments highlight WESCO's strategic focus on growth through data center expansion and strategic mergers and acquisitions.
InvestingPro Insights
WESCO International Inc. (NYSE:WCC) has been demonstrating strong financial performance, as evidenced by recent insider transactions and market data. According to InvestingPro, the company's market capitalization stands at $10.14 billion, with a P/E ratio of 16.32, indicating a relatively reasonable valuation compared to its earnings.
InvestingPro Tips highlight that WESCO has been aggressively buying back shares, which often signals management's confidence in the company's future prospects. This aligns with the recent insider activity, where Executive Vice President Geary William Clayton exercised stock options and sold shares, potentially capitalizing on the company's strong performance.
The company's stock has shown impressive returns, with InvestingPro data revealing a 31.06% price total return over the past three months and a substantial 46.65% return over the past year. This robust performance is further supported by an InvestingPro Tip indicating that WESCO has been a strong performer over the last month and three months.
WESCO's financial health appears solid, with InvestingPro noting that liquid assets exceed short-term obligations. This financial stability is crucial for a company in the Trading Companies & Distributors industry, where WESCO is a prominent player.
For investors seeking more comprehensive insights, InvestingPro offers 10 additional tips for WESCO International Inc., providing a deeper understanding of the company's financial position and market dynamics.
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