Ingredion Inc 's (NYSE:INGR) Senior Vice President and Chief Communications and Sustainability Officer, Larry Fernandes, has recently engaged in significant trading of the company's shares, according to the latest SEC filings. Fernandes completed a sale of common stock that resulted in over $282,000 in proceeds.
On May 9, 2024, Fernandes sold a total of 2,369 shares of Ingredion stock at a weighted average price ranging from $119.010 to $119.250, which amounted to a total of approximately $282,183. The transactions were carried out in multiple parts within the provided price range. This disposal of shares follows an acquisition of an equal number of shares on the same day, which Fernandes obtained at a price of $82.28 per share, totaling around $194,921.
It is noted that the shares sold by Fernandes were immediately acquired through the exercise of employee stock options earlier that day. The options, which vested in three equal annual installments between 2016 and 2018, were exercised at the aforementioned price of $82.28 per share.
Following these transactions, Fernandes' direct holdings in the company have adjusted, but the exact post-transaction share ownership has not been disclosed in this summary. However, it is mentioned that additional shares owned through dividend reinvestment are included in the total ownership.
Moreover, Fernandes also has an indirect ownership interest in Ingredion shares held by a 401(k) plan, amounting to 6,057.39 shares of common stock.
Investors and market watchers often monitor the trading activity of company insiders for insights into the company's performance and the confidence level of its executives in the firm's prospects. The transactions by Fernandes represent a notable change in his investment position, although without further context, the reasons behind the sale remain speculative.
Ingredion Inc, headquartered in Westchester, Illinois, operates within the grain mill products industry and is known for its manufacturing of ingredient solutions for various industries.
InvestingPro Insights
Ingredion Inc's (NYSE:INGR) recent insider trading activity coincides with a period where the company showcases a mix of financial robustness and market performance. The company's steady dividend growth, with an impressive track record of raising its dividend for 13 consecutive years and maintaining payments for 27 consecutive years, underlines its commitment to shareholder returns. This is complemented by a high shareholder yield, adding to the investment attractiveness of the stock.
From a valuation perspective, Ingredion is trading at a low P/E ratio of 11.74, which is even more attractive when considering its near-term earnings growth potential. The adjusted P/E ratio as of the last twelve months ending Q1 2024 stands at 12.66, suggesting that the stock may be undervalued relative to its earnings.
The InvestingPro Tips also highlight that Ingredion's stock typically experiences low price volatility, which might appeal to investors looking for stable investments in the current market environment. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position that can reassure investors of the company's ability to meet its immediate financial commitments.
Investors interested in deeper analysis can find additional InvestingPro Tips for Ingredion at https://www.investing.com/pro/INGR. There are currently 14 more tips available, providing further insights into the company's financial health and market performance. For those seeking to leverage these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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