Performance Food Group Co (NYSE:PFGC) has reported a series of transactions by company executive King A. Brent, involving both acquisitions and disposals of company stock. On August 19, 2024, Brent, serving as Executive Vice President, General Counsel, and Secretary of Performance Food Group, sold 12,855 shares of common stock at an average price of $73.23, totaling approximately $941,371.
The transactions, which occurred over several days, also included the disposal of shares through transactions coded as "F" for tax withholding purposes. Specifically, Brent disposed of 6,824 shares at $73.12 per share and 1,463 shares at $73.48 per share, with the total value of these transactions amounting to $606,472. The prices for these sales ranged from $73.12 to $73.48.
In addition to the sales, Brent acquired 19,679 shares and 6,565 shares of common stock through transactions labeled as "A," which are typically associated with the awarding of stock grants. These acquisitions were valued at $0, as they are often granted as part of compensation packages or through employee stock purchase plans.
Investors keeping track of insider transactions at Performance Food Group can note that Brent's recent activities have resulted in a net decrease in his direct ownership of company stock. Following the sales and acquisitions, Brent holds a total of 79,241 shares of Performance Food Group.
Performance Food Group, known for its distribution of food products, has been transparent with its executive stock transactions, providing full information on the sales and the number of shares sold at varying prices upon request. The details of these transactions are publicly available, offering insights into executive stock moves within the company.
In other recent news, Performance Food Group (PFG) has reported strong fourth-quarter growth for fiscal year 2024, with a notable 18.4% year-over-year increase in adjusted EBITDA. The company is also making strategic acquisitions, including Cheney Brothers for $2.1 billion and José Santiago, a broadline foodservice distributor in Puerto Rico. This aligns with PFG's growth strategy and expansion in the Southeast and the Caribbean.
Piper Sandler and Truist Securities have both expressed confidence in PFG's growth potential, with Piper Sandler raising the company's price target to $87.00 from the previous $80.00, and Truist Securities increasing it to $88 from the previous $86. Both firms have maintained their positive ratings on the stock, citing PFG's ability to effectively navigate industry challenges and realize synergies from acquisitions.
For fiscal year 2025, PFG projects net sales to be between $60 billion and $61 billion, with adjusted EBITDA ranging from $1.6 billion to $1.7 billion. The company plans to drive growth through organic investments, share repurchases, and debt reduction. These recent developments highlight PFG's commitment to its growth strategy and financial performance.
InvestingPro Insights
Performance Food Group Co (NYSE:PFGC) has seen substantial activity in its stock, both from internal transactions and market performance. InvestingPro Tips indicate that analysts have recently revised their earnings expectations downwards for the upcoming period, which may be a point of consideration for investors tracking insider transactions like those of Executive Vice President Brent.
Moreover, the stock is currently trading in overbought territory according to the Relative Strength Index (RSI), which could suggest a potential pullback in the near term. This aligns with the recent sales by Brent, possibly indicating his anticipation of a price correction following a significant return over the past week.
InvestingPro Data reveals key financial metrics for Performance Food Group. The company boasts a market capitalization of $11.5 billion and a P/E ratio of 26.09, which is slightly above the adjusted P/E ratio for the last twelve months as of Q4 2024, standing at 26.3. This high P/E ratio relative to near-term earnings growth may raise questions about the stock's current valuation.
Revenue for the last twelve months as of Q4 2024 was reported at $54.68 billion, with a moderate growth rate of 2.49%. Despite this growth, the company's gross profit margins appear to be under pressure, with a margin of 12.03%, suggesting efficiency challenges in converting sales into profits.
For those interested in further insights, InvestingPro offers additional tips on Performance Food Group, providing a deeper analysis of the company's financial health, industry position, and future profitability. Visit https://www.investing.com/pro/PFGC for a comprehensive list of 11 additional InvestingPro Tips that can help inform your investment decisions.
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