Cary Devore, Executive Vice President and Chief Operating & Transformation Officer at Utz Brands, Inc. (NYSE:UTZ), recently sold 30,000 shares of the company's Class A Common Stock. The shares were sold at an average price of $17.3166, with the transactions occurring at prices ranging from $17.24 to $17.37. This sale totaled approximately $519,498. Following this transaction, Devore retains ownership of 451,117 shares of Utz Brands.
In other recent news, Utz Brands reported third-quarter earnings that met expectations, affirming its full-year 2024 guidance. Mizuho Securities lowered its price target for the company to $21, maintaining an Outperform rating, while Piper Sandler increased its target to $24, upholding an Overweight rating. Despite aggressive discounting in the snack market, Utz Brands' volume remains stable, supported by new distribution channels and consistent market share growth.
Strategic measures such as reinvestments and packaging size adjustments are expected to sustain over 3% organic sales growth in 2025. However, Mizuho revised the company's 2025 sales and adjusted EBITDA forecast to $220 million due to projected pricing softness. Piper Sandler also revised the 2025 estimated earnings per share (EPS) downward from $0.86 to $0.83.
In other developments, Utz Brands anticipates an acceleration in Q4 2024 organic growth to approximately 3.5%, driven by increased marketing, innovation, and distribution. Despite challenges in the private label segment and complementary products, the company reported positive distribution gains with larger national retailers and alternative channels. The full-year organic growth outlook was reaffirmed at 2% to 2.5%, with kettle production capacity expansion planned to start in Q1 2025.
InvestingPro Insights
To provide additional context to Cary Devore's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Utz Brands, Inc. (NYSE:UTZ).
As of the latest data, Utz Brands has a market capitalization of $2.45 billion, reflecting its position in the snack food industry. The company's revenue for the last twelve months as of Q3 2024 stood at $1.42 billion, although it experienced a slight decline of 1.42% during this period. This revenue trend aligns with the recent insider sale, as executives may be sensitive to short-term performance fluctuations.
Despite the revenue dip, Utz Brands shows some positive financial indicators. An InvestingPro Tip highlights that the company has raised its dividend for 4 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a current dividend yield of 1.36%, which may attract income-focused investors.
Another InvestingPro Tip suggests that net income is expected to grow this year. This projection, coupled with analysts' predictions of profitability, could signal potential upside for the stock, even as the COO reduces his position. It's worth noting that InvestingPro offers 5 additional tips for Utz Brands, providing a more comprehensive analysis for investors seeking deeper insights.
The company's price-to-book ratio of 3.56 indicates that the market values Utz Brands at a premium to its book value, which could be interpreted as investor confidence in the company's brand strength and growth prospects. This valuation metric, along with the recent insider transaction, may prompt investors to closely monitor Utz Brands' future performance and strategic initiatives.
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