Kronos Worldwide exec buys $5670 in company stock

Dallas, TX - In a recent transaction on August 19, Andrew B. Nace, the Executive Vice President of Kronos Worldwide Inc (NYSE:KRO), purchased 500 shares of the company’s common stock, according to a new SEC filing. The shares were acquired at a price of $11.34 each, amounting to a total investment of $5670.

This purchase by Nace is a notable move, reflecting a direct investment into the company’s stock. Following the transaction, Nace now holds a total of 16,453.147 shares in Kronos Worldwide, a global leader in the production of titanium dioxide pigments.

Investors often monitor insider transactions as they can provide insight into how the company’s executives view the stock’s value and prospects. The buying and selling activities of executives can be a signal to the market, especially when it involves significant amounts of stock.

Kronos Worldwide, headquartered in Dallas, Texas, has a strong presence in the industrial inorganic chemicals sector. The company's commitment to this industry is reflected in its continuous efforts to innovate and maintain a competitive edge in the market.

It's important for investors to consider the broader context of any insider transactions when making investment decisions. The recent purchase by Nace represents confidence in the company's future and aligns with the interests of shareholders seeking long-term value creation.

In other recent news, Kronos Worldwide has fully acquired the remaining 50% joint venture interest in Louisiana Pigment Company, L.P. (LPC) from Venator Investments, Ltd. The acquisition, which cost $185 million upfront and a potential earn-out of up to $15 million tied to LPC's future earnings for 2025 and 2026, makes LPC an indirect, wholly-owned subsidiary of Kronos. The move is anticipated to enhance Kronos's product offerings and boost sales while realizing synergies in commercial, overhead, and supply chain operations.

Additionally, Kronos has increased its global revolving credit facility with Wells Fargo from $225 million to $300 million and extended the maturity date to 2029. The amended facility now includes LPC's receivables and certain inventories in the borrowing base.

In the wake of these developments, Kronos's board of directors declared a quarterly dividend of $0.05 per share, a reduction from the previous quarter's dividend. CEO James M. Buch explained the reduced dividend would aid the company in maintaining a robust balance sheet and exploring strategic investments while managing the increased financial commitments resulting from the LPC acquisition. These are the latest developments in the company's operations.

InvestingPro Insights

The recent insider purchase by Executive Vice President Andrew B. Nace of Kronos Worldwide Inc (NYSE:KRO) aligns with several positive signals highlighted by InvestingPro. With a commitment to returning value to shareholders, Kronos boasts a high shareholder yield, which is a blend of dividend payments and share repurchases. This is underscored by the company's impressive track record of maintaining dividend payments for 15 consecutive years, a testament to its financial stability and investor-friendly approach.

InvestingPro data reveals that Kronos has a market capitalization of $1.29 billion, with a revenue growth over the last twelve months as of Q2 2024 at 6.27%. This growth is further bolstered by a quarterly revenue growth in Q2 2024 of 12.93%, reflecting the company's ability to increase sales in a competitive market. Additionally, analysts predict that the company will be profitable this year, which is corroborated by the fact that Kronos was profitable over the last twelve months.

Investors considering Kronos Worldwide may also find the InvestingPro Tips valuable, which include expectations of net income growth and sales growth in the current year. Moreover, the company has experienced a large price uptick over the last six months, with a 39.46% total return, indicating a robust performance in the stock market. For those seeking more in-depth analysis, InvestingPro offers additional tips on Kronos Worldwide, available at https://www.investing.com/pro/KRO.

As investors weigh the significance of insider transactions like that of Mr. Nace, these InvestingPro Tips and data metrics provide a broader perspective on the company's financial health and market position. With 9 additional tips listed on InvestingPro, investors have access to a wealth of information to guide their investment decisions.

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