AdvanSix Inc . (NYSE:ASIX) Controller Christopher Gramm has recently engaged in transactions involving the company's stock, according to a new SEC filing. Gramm executed a sale of 270 shares of common stock at prices ranging from $32.00 to $32.04, netting a total of $8,640.
The transactions, which took place on October 4, were part of a pre-arranged trading plan under Rule 10b5-1, established on March 13, 2024. This rule allows company insiders to set up a trading plan for selling stocks they own in a way that avoids accusations of insider trading. It is noteworthy that the sales were conducted at a weighted average price of $32.00 per share, which indicates a consistent selling strategy by the executive.
In addition to the shares sold, Gramm also acquired 270 shares of AdvanSix common stock on the same day, valued at $14.29 per share, amounting to a total of $3,858. This transaction represents the exercise of stock options that vested in increments over the past three years, with the most recent vesting date being February 26, 2023.
Following these transactions, Gramm's ownership in the company stands at 43,463 shares of common stock directly held. The controller's actions are a routine part of managing personal investment holdings and are disclosed in accordance with SEC regulations.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. AdvanSix Inc. specializes in the production of plastics, materials, synthetic resins, and nonvulcan elastomers, and operates under the industrial classification code 2821. The company, incorporated in Delaware with a fiscal year-end on December 31, is headquartered in Parsippany, New Jersey.
In other recent news, AdvanSix, a diversified chemistry company, has been granted $12 million by the U.S. Department of Agriculture (USDA) to expand its granular ammonium sulfate production. This grant is part of the USDA's Fertilizer Production Expansion Program (FPEP) and will support AdvanSix's Sustainable U.S. Sulfate to Accelerate Increased Nutrition (SUSTAIN) initiative, aiming to increase the facility's production capacity by roughly 200,000 tons annually.
In addition to this, AdvanSix has reported strong financial results for Q2 2024, with sales increasing by 6% due to higher domestic nylon volumes, a robust application season for ammonium sulfate, and sustained strength in acetone pricing. The company has also generated $1.2 billion in cash from operations since 2017, maintaining a double-digit percentage return on invested capital.
Further, AdvanSix has made significant changes to its leadership team, appointing Sidd Manjeshwar as the new Senior Vice President and Chief Financial Officer, succeeding Michael Preston, who will retire at the end of 2024. Donald P. Newman has also joined AdvanSix's Board of Directors, expanding the board to nine members. These are the recent developments surrounding AdvanSix.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on AdvanSix Inc.'s financial position and market performance, providing context to the insider transactions reported. The company's market capitalization stands at $837.45 million, reflecting its current market valuation.
AdvanSix's stock has shown strong momentum recently, with InvestingPro data indicating a 51.32% price total return over the past three months and an 18.56% return in the last month. This upward trend aligns with the company trading near its 52-week high, as noted in one of the InvestingPro Tips.
The company's P/E ratio of 99.94 suggests a high earnings multiple, which is consistent with another InvestingPro Tip highlighting that AdvanSix is trading at a high EBIT valuation multiple. This valuation metric may be of interest to investors considering the recent insider transactions.
It's worth noting that AdvanSix has been rewarding shareholders, with an InvestingPro Tip pointing out that the company has raised its dividend for three consecutive years. The current dividend yield stands at 2.0%, with a 10.34% dividend growth rate over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on AdvanSix, which could provide further insights into the company's financial health and market position.
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