Solar stocks surge after Treasury tightens clean energy tax credit rules
Andrew B. Nace, the Executive Vice President of Kronos Worldwide Inc (NYSE:KRO), has recently acquired shares of the company's stock, as reported in the latest filings. In a series of transactions, Nace purchased a total of 500 shares with prices ranging from $11.21 to $11.50 per share, amounting to over $5,677.
The transactions, which occurred on August 15 and 16, signify a vote of confidence in the industrial inorganic chemicals manufacturer by one of its top executives. Following these purchases, Nace's direct ownership in the company has increased to 15,953.147 shares of common stock.
Investors often monitor insider buying as it can indicate executives' belief in the company's future prospects. With these recent acquisitions by Nace, stakeholders may take note of the executive's optimistic stance on Kronos Worldwide's value.
Kronos Worldwide, headquartered in Dallas, Texas, specializes in the production and marketing of titanium dioxide pigments, which are key components in products ranging from paints to plastics. The company's stock trades on the New York Stock Exchange under the ticker symbol KRO.
In other recent news, Kronos Worldwide has completed the acquisition of the remaining 50% interest in Louisiana Pigment Company (LPC) from Venator Investments, making LPC a wholly-owned subsidiary of Kronos. The purchase, which involved an upfront cash payment of $185 million and a potential earn-out of up to $15 million, is expected to enhance Kronos's product offerings and increase sales. In addition, Kronos has amended its global revolving credit facility with Wells Fargo, increasing the maximum borrowing amount and extending the maturity date.
These are among the latest developments for Kronos, which financed the deal with available cash and borrowings under its credit facility. The company will start reporting LPC as a wholly-owned subsidiary in its next quarterly filing. Furthermore, Kronos's board of directors declared a reduced quarterly dividend, a move CEO James M. Buch explains will help maintain a strong balance sheet while managing the increased financial commitments from the LPC acquisition. These updates highlight the company's strategic moves in recent times.
InvestingPro Insights
Following the recent insider buying by Executive Vice President Andrew B. Nace, Kronos Worldwide Inc (NYSE:KRO) has shown notable developments that investors may find compelling. The company, which specializes in titanium dioxide pigments, has a market capitalization of approximately $1.3 billion. An InvestingPro Tip highlights that Kronos Worldwide is expected to experience net income growth this year, which may further validate the confidence shown by the insider transactions.
From a financial perspective, Kronos Worldwide has a P/E ratio of 664.71, which might be considered high; however, this figure needs to be contextualized within industry standards and future growth expectations. The company's revenue for the last twelve months as of Q2 2024 stands at $1.776 billion, with a growth of 6.27%. An additional InvestingPro Tip suggests that analysts are anticipating sales growth in the current year, which could be a driving factor behind the recent insider purchases.
Investors tracking the stock's performance will note that Kronos Worldwide has maintained dividend payments for 15 consecutive years, which is a testament to its financial stability and commitment to shareholder returns. The dividend yield as of the latest data stands at 1.74%. For those interested in further analysis and additional InvestingPro Tips, there are currently 11 more tips available on the company, offering a more detailed investment perspective and potentially valuable insights into Kronos Worldwide's future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.