Pamela Edwards buys $25,020 in AZEK Co stock

AZEK Co Inc. (NYSE:AZEK) reported a notable transaction from one of its directors, Pamela J. Edwards, on August 15, 2024. Edwards, who serves on the board of the company known for its specialization in plastic products, acquired 600 shares of Class A Common Stock at a price of $41.70 per share, amounting to a total investment of $25,020.

This recent purchase by Edwards reflects a vote of confidence in the company, increasing her total holdings to 8,708 shares of AZEK Co Inc. The transaction, reported on August 16, 2024, showcases continued insider interest in the company's stock.

Investors often monitor insider buying as it can be a signal of a director's bullish outlook on the company's future performance. The details of the transaction have been made public through the required regulatory filings with no additional remarks or footnotes provided.

AZEK Co Inc., with its headquarters in Chicago, Illinois, operates under the industrial classification of plastics products, not elsewhere classified. The company's shares are traded on the New York Stock Exchange under the ticker symbol NYSE:AZEK.

In other recent news, The AZEK Company Inc., a leading designer and manufacturer of outdoor living products, has initiated a $50 million accelerated share repurchase (ASR) agreement with JPMorgan Chase (NYSE:JPM) Bank. The agreement will see AZEK repurchase roughly 1.0 million shares of its Class A common stock, with the final settlement expected to be completed by November 2024. This strategic move is part of AZEK's broader commitment to sustainability and innovation in the outdoor living space.

In addition to this, AZEK reported a third-quarter sales growth of 18%, surpassing the provided guidance of 4-8%. This led to an increase in its total sales guidance for fiscal year 2024, now ranging from $1.42 to $1.44 billion. AZEK also raised its adjusted EBITDA guidance slightly for fiscal year 2024, now expecting $370-380 million, a 1% increase at the midpoint.

Several analyst firms have made adjustments following these developments. JPMorgan revised its price target for AZEK to $48.00, down from $52.00, but maintained an Overweight rating on the stock. BMO Capital and RBC Capital also reduced their price targets to $46.00, with RBC Capital maintaining an Outperform rating and BMO Capital holding a Market Perform stance.

Furthermore, AZEK reported a 12% year-on-year increase in net sales, reaching $434 million, and its adjusted EBITDA margin reached a record high of 27.5%. In response to solid cash generation, AZEK's board approved a $600 million expansion of the share repurchase program. These are recent developments for AZEK, which continues to show robust business fundamentals despite some market uncertainties.

InvestingPro Insights

Following the recent insider purchase by Director Pamela J. Edwards, AZEK Co Inc. (NYSE:AZEK) demonstrates several financial metrics that could interest investors. The company's market capitalization stands at approximately $5.94 billion, reflecting its substantial presence within the plastic products industry. Additionally, AZEK's price-to-earnings (P/E) ratio is reported at 36.84, and when adjusted for the last twelve months as of Q3 2024, it rises to 43.04, indicating a premium valuation compared to earnings.

Revenue growth remains a highlight for AZEK, with a 15.23% increase over the last twelve months as of Q3 2024. This growth is consistent with the company's quarterly performance, which shows a 12.08% rise in revenue for Q3 2024. Despite trading at high valuation multiples, such as a Price / Book ratio of 4.26, the company's gross profit margin stands strong at 37.61%, showcasing its ability to maintain profitability amidst its revenue growth.

InvestingPro Tips suggest that AZEK is expected to grow its net income this year, and analysts predict the company will be profitable within the same timeframe. These forecasts align with the insider buying activity, potentially signaling a positive outlook for the company's financial future. For investors seeking more comprehensive analysis, InvestingPro offers additional tips, including insights on earnings revisions, stock price volatility, and liquidity. There are currently 17 additional tips available for AZEK on InvestingPro.

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