Cadre Holdings, Inc. (NYSE:CDRE) director Nicolas Sokolow recently sold 10,000 shares of the company's common stock, generating over $322,000 in total proceeds. The sale took place on June 3, 2024, with the shares sold at a weighted average price of $32.2912, in a range from $32.00 to $32.72 per share.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission. According to the document, following the sale, Sokolow's directly held stake in Cadre Holdings decreased to 62,347 shares. Additionally, the report detailed indirect ownership through various entities. ST Investors Fund, LLC, where Sokolow serves as secretary and treasurer, holds 577,620 shares after the transaction. Korsak Holdings, LLC and Madetys Investments, LLC, also connected to Sokolow in similar capacities, own 252,701 and 84,231 shares, respectively.
Sokolow's role in these entities was clarified in the footnotes of the filing, where he disclaimed beneficial ownership of the reported securities, except to the extent of his pecuniary interest. The filing also indicated that full information regarding the number of shares sold at each separate price within the stated range would be provided upon request.
Cadre Holdings, known for its work in the orthopedic, prosthetic, and surgical appliances and supplies industry, has not made any additional comments regarding the transactions. Investors and stakeholders in Cadre Holdings will be keeping a close eye on insider trading activities as an indicator of executive confidence in the company's prospects.
In other recent news, Cadre Holdings has posted a strong Q1 performance with record net sales of $137.9 million, marking the highest since its inception. The company attributes this success to its strategic mergers and acquisitions (M&A) program, having completed two accretive acquisitions already this year. CEO Warren Kanders has reaffirmed the 2024 guidance for net sales and adjusted EBITDA, with expected growth rates of 16.6% and 23.5%, respectively. Despite transaction expenses and amortization of intangibles impacting earnings per share (EPS), Cadre has generated strong free cash flow and remains committed to returning capital to shareholders. The company anticipates strong demand for its products due to ongoing geopolitical uncertainty and the importance of defense budgets. As part of their strategy, Cadre intends to continue its M&A activities, aiming for long-term EBITDA margin expansion. These developments are recent and reflect Cadre's commitment to its double-digit growth objective.
InvestingPro Insights
As Cadre Holdings, Inc. (NYSE:CDRE) navigates the market following recent insider trading activity, investors are keen to understand the company's financial position and future potential. According to InvestingPro, the company is currently trading at a low price-to-earnings (P/E) ratio relative to near-term earnings growth, with an adjusted P/E ratio of 29.72 for the last twelve months as of Q1 2024. This suggests that the company's earnings could grow faster than what the current share price implies, potentially offering an attractive entry point for investors.
Furthermore, Cadre Holdings has demonstrated a solid financial base, with liquid assets surpassing short-term obligations, indicating the company's ability to cover immediate liabilities. This financial stability is supported by a moderate level of debt, which can be a reassuring factor for investors concerned about the company's long-term solvency.
From a performance standpoint, the company has a robust track record with a strong return over the last five years. This is complemented by a 9.34% revenue growth in the last twelve months as of Q1 2024, showcasing the company's ability to expand its financial top line. Additionally, Cadre Holdings has been profitable over the last twelve months, and analysts predict that it will remain profitable this year.
While the company is trading at a high earnings multiple and a high Price / Book multiple of 4.95, these metrics might be justified by the company's growth and profitability prospects. Investors interested in deeper analysis can find additional InvestingPro Tips on the InvestingPro platform. Currently, there are 9 tips available that can provide further insights into Cadre Holdings' performance and valuation. For those considering an InvestingPro subscription, use coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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