In a recent SEC filing, Veralto Corp (NYSE:VLTO) reported that its Chief Accounting Officer, Bernard M. Skeete, sold 200 shares of the company's common stock on November 26. The shares were sold at an average price of $108.78 each, resulting in a total transaction value of $21,756. Following this transaction, Skeete holds 3,483 shares of Veralto Corp.
In other recent news, Veralto Corporation reported solid growth in its Q3 earnings, with a 4.6% increase in core sales and a 19% rise in adjusted earnings per share (EPS) to $0.89. The company's Water Quality segment sales rose by 3.6% to $801 million, and the PQI segment saw a 6.3% increase to $513 million. Veralto's free cash flow stood at $215 million, with a balance sheet showing $1.27 billion in cash. In addition to these financial updates, Veralto announced a $15 million investment in Axine Water Technologies, a strategic partnership aimed at enhancing its water treatment portfolio.
The company also completed the acquisition of TraceGains, a move that enhances its capabilities in the food and beverage compliance sector. Looking ahead, Veralto projects low to mid-single-digit core sales growth in Q4, with adjusted operating profit margins anticipated around 24%. The expected adjusted EPS for Q4 ranges between $0.86 and $0.90, while the full-year adjusted EPS guidance has been increased to $3.44 to $3.48.
These recent developments underscore Veralto's commitment to growth and financial health, despite facing challenges in the Chinese market and the Water Quality segment.
InvestingPro Insights
The recent insider sale by Veralto Corp's Chief Accounting Officer comes at a time when the company's stock is trading near its 52-week high, with the price at 93.89% of its peak. This positioning aligns with several key metrics from InvestingPro that paint a picture of Veralto's current financial health and market valuation.
Veralto boasts impressive gross profit margins, with the latest data showing a gross profit margin of 59.38% for the last twelve months as of Q3 2024. This strong profitability is complemented by a solid operating income margin of 23.07% over the same period, indicating efficient operations.
However, investors should note that Veralto is trading at relatively high valuation multiples. The company's P/E ratio stands at 31.78, which is considered elevated by many standards. This high earnings multiple is one of the key InvestingPro Tips highlighted for Veralto, suggesting that the stock may be priced at a premium compared to its earnings.
Despite the high valuation, Veralto has demonstrated growth, with revenue increasing by 3.11% over the last twelve months and 4.7% in the most recent quarter. The company's market capitalization of $26.7 billion reflects investor confidence in its future prospects.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Veralto, providing deeper insights into the company's financial position and market performance. These additional tips can be particularly valuable for investors looking to make informed decisions in light of recent insider transactions and the company's current market valuation.
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