Christopher Pappas, the President and CEO of Chefs' Warehouse, Inc. (NASDAQ:CHEF), recently sold 200,000 shares of the company's common stock. The shares were sold at a price of $48.85 each, totaling approximately $9.77 million. The transaction comes as the stock trades near its 52-week high of $49.25, having delivered impressive returns of over 65% year-to-date. According to InvestingPro analysis, the stock's RSI suggests it's currently in overbought territory. Following this transaction, Pappas retains direct ownership of 2,206,312 shares. Additionally, he holds 290,352 shares indirectly through GRATs. The sale was conducted for tax and estate planning purposes, as noted in the filing. Despite the insider sale, InvestingPro data shows the company maintains a GREAT financial health score, with 11 additional ProTips available to subscribers exploring this stock's potential.
In other recent news, Chefs' Warehouse, a premier distributor of specialty food products, demonstrated steady growth in its Q3 2024 results. The company reported a 5.6% organic growth in net sales, reaching $931.5 million, and an increase in gross profit margin to 24.1%. Specialty sales also saw a 7.5% increase, driven by a 4.7% growth in unique customer accounts. Despite softer demand in July due to seasonal factors and Hurricane Beryl, the company updated its full-year financial guidance with net sales projected between $3.710 billion and $3.775 billion, and an adjusted EBITDA of $210 million to $219 million.
In other developments, Chefs' Warehouse has transitioned to all-electronic stock, eliminating the need for physical stock certificates. This move is part of a broader industry trend towards digital management of securities, offering increased security and efficiency for both the company and its shareholders. The company also repurchased $10 million in shares and discussed a term loan of $262 million maturing in 2029 with a reduced coupon rate. These recent developments indicate the company's focus on market share growth and operational efficiency.
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