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Eagle Materials CEO Michael Haack sells $10.1m in stock

Published 26/11/2024, 08:12 am
EXP
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Eagle Materials Inc . (NYSE:EXP) President and CEO, Michael Haack, executed a series of transactions on November 21 and 22, selling shares worth approximately $10.1 million. The sales were conducted under a Rule 10b5-1 trading plan and involved multiple transactions at prices ranging from $305.20 to $311.06 per share.

In addition to the sales, Haack also exercised options to acquire shares. On November 21, he acquired 20,979 shares at $91.58 each, and on November 22, he acquired 11,888 shares at $60.21 each. Despite these acquisitions, the transactions resulted in a net decrease in his holdings, leaving him with 85,811 shares of Eagle Materials following the sales.

These transactions reflect Haack's ongoing management of his equity position in the company, which specializes in the manufacture of cement and other building materials.

In other recent news, Eagle Materials posted record revenue of $624 million in its Q2 fiscal 2025 earnings call, despite a 5% volume dip in the Heavy Materials segment. The company's Light Materials segment saw a 5% increase in revenue, and they reported a litigation loss of $700,000. Truist Securities adjusted its outlook on Eagle Materials, raising the price target to $330 from $320, maintaining a Buy rating. The firm anticipates a rise in cement and wallboard pricing next year due to expected volume growth in cement, driven by infrastructure spending.

On the other hand, Loop Capital downgraded Eagle Materials from a Buy to a Hold rating, setting a price target at $315.00. Loop Capital cited a survey indicating that wallboard demand is trailing initial expectations, and previously announced price increases have been retracted. The firm expressed concern about potential earnings challenges due to a slowdown in new residential housing construction. These recent developments underscore the dynamic market conditions Eagle Materials is navigating.

InvestingPro Insights

Eagle Materials Inc. (NYSE:EXP) has been demonstrating strong financial performance, as evidenced by recent InvestingPro data. The company's market capitalization stands at $10.64 billion, with a P/E ratio of 22.45, indicating investor confidence in its earnings potential. This valuation aligns with the CEO's recent stock transactions, suggesting a balanced approach to equity management.

InvestingPro Tips highlight that Eagle Materials has maintained dividend payments for 21 consecutive years, underscoring the company's commitment to shareholder returns. This consistent dividend policy may provide context for why executives like CEO Michael Haack might engage in periodic share transactions while maintaining a significant stake in the company.

Additionally, Eagle Materials is trading near its 52-week high, with a price that is 98.2% of its peak. This strength is further reflected in the company's impressive year-to-date price total return of 55.44% and a one-year return of 76.06%. These metrics suggest that the timing of the CEO's share sales coincides with a period of robust stock performance.

For investors seeking a deeper understanding of Eagle Materials' financial health and market position, InvestingPro offers 16 additional tips, providing a comprehensive analysis of the company's prospects and potential risks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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