Performance food group director sells $294k in stock

In a recent transaction, Kimberly Grant, a director at Performance Food Group Co (NYSE:PFGC), sold 4,000 shares of the company's common stock. The total value of the shares sold amounted to approximately $294,440, with the weighted average price per share being $73.61. The sales were executed in multiple transactions at prices ranging from $73.50 to $73.69.

The transactions, which took place on August 21, 2024, were disclosed in a filing with the Securities and Exchange Commission. Following the sale, Grant's remaining ownership in the company consists of 10,184 shares of common stock.

Investors often keep an eye on insider transactions such as this to gain insights into a company's performance and the confidence level that executives and directors have in the business's prospects. Performance Food Group Co, with its headquarters in Richmond, Virginia, operates in the wholesale groceries and general line industry.

For those interested in the specifics of the transactions, further details are available upon request, as the reporting person has agreed to provide full information regarding the number of shares sold at each separate price within the provided range.

The transaction was signed off by A. Brent King, acting as Attorney-in-Fact, on August 22, 2024.

In other recent news, Performance Food Group (PFG) has reported strong fourth-quarter results for fiscal year 2024, showing a significant 18.4% year-over-year increase in adjusted EBITDA. Following these robust results, PFG has set ambitious plans for expansion through strategic acquisitions. The company has announced the acquisition of Cheney Brothers in a $2.1 billion all-cash deal and has also purchased José Santiago, a broadline foodservice distributor in Puerto Rico. These acquisitions are expected to enhance PFG's presence in the Southeast and the Caribbean.

Piper Sandler and Truist Securities have shown confidence in PFG by raising their price targets to $87.00 and $88.00 respectively, maintaining positive ratings on the stock. These upward adjustments follow PFG's strong earnings and revenue results, and align with the company's guidance for fiscal year 2025. Both firms highlight PFG's ability to navigate industry challenges, gain market share, and realize cost efficiencies as key drivers for the stock's positive outlook.

In terms of future expectations, PFG projects net sales for fiscal year 2025 to be between $60 billion and $61 billion, with adjusted EBITDA ranging from $1.6 billion to $1.7 billion. The company plans to drive growth through organic investments, share repurchases, and debt reduction. These recent developments underscore PFG's commitment to its growth strategy and financial performance.

InvestingPro Insights

As investors scrutinize insider transactions like the recent sale by Kimberly Grant at Performance Food Group Co (NYSE:PFGC), they also benefit from considering a broader financial context. According to InvestingPro data, Performance Food Group has a market capitalization of $11.49 billion and is trading at a price-to-earnings (P/E) ratio of 26.25. This valuation places the company in a higher bracket compared to near-term earnings growth, suggesting investors are paying a premium for its shares.

Performance Food Group's revenue for the last twelve months as of Q4 2024 stands at approximately $54.68 billion, with a growth of 2.49% over the period. This steady increase is a positive sign, reflecting the company's ability to expand its sales. Moreover, the firm's gross profit margin during the same timeframe was 12.03%, which, despite being indicative of weak gross profit margins as per one of the InvestingPro Tips, still shows the company's capacity to generate earnings above its cost of goods sold.

An InvestingPro Tip highlights that the company's stock is currently in overbought territory based on the Relative Strength Index (RSI), which may suggest a potential pullback in the share price. Additionally, Performance Food Group is recognized as a prominent player in the Consumer Staples Distribution & Retail industry. With liquid assets that exceed short-term obligations and a prediction by analysts that the company will be profitable this year, interested investors may find these insights valuable when assessing the company's financial health and future prospects.

For those looking to dive deeper into Performance Food Group's financials and insider transactions, InvestingPro offers a comprehensive suite of tools and additional tips. There are currently 10 more InvestingPro Tips available for PFGC at https://www.investing.com/pro/PFGC, providing further analysis and metrics that could be crucial for making informed investment decisions.

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