REX American Resources shifts to book-entry stock system

REX American Resources (NASDAQ:AREC) Corp (NYSE:REX), an industrial organic chemicals company, has amended its by-laws to transition to a book-entry system for its stock, the company disclosed in a recent SEC filing. Effective August 1, 2024, REX's Board of Directors decided that shares of the company's stock issued or transferred after this date will be registered in the Direct Registration System (DRS), eliminating the need for physical stock certificates.

The move to a book-entry system, where shareholders' stock holdings are maintained electronically, is a step towards streamlining the transfer and management of stock ownership. This amendment to the by-laws signifies the company's efforts to modernize its stock administration and align with current practices in the securities industry.

REX American Resources, formerly known as REX Stores Corp and Audio Video Affiliates Inc., is incorporated in the state of Delaware and has its fiscal year-end on January 31. The company's principal executive offices are located in Dayton, Ohio.

The company's stock, which trades on the New York Stock Exchange under the ticker symbol REX, will continue to be available for trading as usual. This administrative update is based on the information provided in the SEC filing and does not reflect any changes in the company's operational or financial performance.

In other recent news, REX American Resources has been making headway despite challenges in the ethanol market. Truist Securities has revised its price target for REX American Resources to $65 from $70, maintaining a Buy rating on the shares. The firm acknowledges REX's consistent operational and financial performance, particularly in the first quarter, despite less-than-ideal conditions for ethanol production.

REX American Resources has also been advancing its carbon capture, utilization, and storage (CCUS) initiatives, securing all necessary pipeline right-of-ways and subsurface injection well easements. The company is currently seeking local and state approvals for its pipeline and project, as well as the Environmental Protection Agency's class VI well permit.

On the earnings front, REX American Resources reported robust Q1 results, with a significant increase in ethanol sales and gross profit. The company is also investing in the One Earth Energy carbon capture facility and plans to expand its ethanol production capacity. Despite a challenging pricing environment, REX has maintained substantial profitability and a solid financial position, with significant cash reserves and no bank debt. These are some of the recent developments for REX American Resources.

InvestingPro Insights

In light of REX American Resources Corp's recent transition to a book-entry system, it's worth noting that the company holds a strong financial position with more cash than debt on its balance sheet, suggesting a robust foundation for managing its modernized stock administration. This is complemented by a market capitalization of approximately $768.24 million and a P/E ratio of 11.76, indicating a potentially attractive valuation for investors.

Despite a recent stock price decline over the last week, REX American Resources has demonstrated profitability over the last twelve months, and analysts anticipate the company will remain profitable this year. This is an important consideration for investors as they evaluate the company's performance in a dynamic market environment. Additionally, with liquid assets exceeding short-term obligations, REX appears well-positioned to meet its immediate financial commitments.

For those interested in further insights and a deeper analysis, there are additional InvestingPro Tips available at InvestingPro. With these tools at their disposal, investors can make more informed decisions regarding their REX stock holdings amidst the company's administrative updates and ongoing market performance.

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