Service corp CEO sells over $316k in company stock

In a recent transaction, Thomas L. Ryan, the President, CEO, and Chairman of Service Corp International (NYSE:SCI), sold shares of the company stock, totaling over $316,000. The executive offloaded 4,215 shares at prices ranging from $75.05 to $75.07, with the weighted average sale price reported at $75.0511.

The sale occurred on August 9, 2024, as indicated by the official filing with the Securities and Exchange Commission. The transaction resulted in Ryan holding 988,365 shares of Service Corp International directly after the sale. Additionally, the executive has indirect ownership of 157,899 shares through Three Children's Trusts and 486,300 shares by a Deferred Compensation Plan.

On the same day, Ryan also acquired 4,215 shares of common stock at a price of $29.25 per share, which amounted to a total of $123,288. This transaction was related to employee stock options that vested in three equal installments on February 7 of 2018, 2019, and 2020.

Service Corp International, headquartered in Houston, Texas, operates in the personal services industry and is known for its end-of-life services, including funeral and cemetery operations. The company's stock is traded under the ticker symbol SCI on the New York Stock Exchange.

Investors often monitor the buying and selling activities of company executives as these transactions can provide insights into their perspectives on the company's future performance. However, it is important to note that there can be various reasons for an executive to sell stock, and such transactions do not necessarily indicate a negative outlook.

The SEC filing also included a statement that the reporting person, in this case, Ryan, would provide full information regarding the number of shares sold at each separate price upon request by the Commission staff, the issuer, or a security holder of the issuer. Jessica Vu, serving as Attorney-in-Fact for Thomas L. Ryan, signed the document, which was filed on August 13, 2024.

In other recent news, Service Corporation International (SCI) declared a quarterly cash dividend of $0.30 per share, scheduled for payment to shareholders on record as of September 13, 2024. The company reported a slight decrease in its Q2 2024 adjusted earnings per share (EPS) to $0.79, down from the prior year, due to a 2.7% fall in funeral volumes. However, this decline was partially offset by increased cemetery profits, with gross profits rising by $5 million. Adjusted operating cash flow also increased by $62 million from the prior year, reaching $220 million.

Despite the challenges, SCI maintains a positive outlook, projecting revenue and margin growth in the second half of 2024 and a return to EPS growth in 2025. The company's EPS growth for 2025 is expected to be towards the higher end of its historical annual guidance range of 8% to 12%. These recent developments reflect SCI's strategic approach to navigate the challenges within the deathcare industry and its commitment to future growth.

It's worth noting that the company's full-year EPS guidance for 2024 is at the lower end of the $3.50 to $3.80 range. Furthermore, the company's leverage ratio slightly increased to 3.7 times net debt to EBITDA. These are important factors for investors to consider in their analysis.

InvestingPro Insights

Service Corp International (NYSE:SCI) has been a topic of interest following recent insider trading activity by its President, CEO, and Chairman, Thomas L. Ryan. As investors look to understand the implications of these transactions, it is valuable to consider some key financial metrics and insights that can provide a broader context.

InvestingPro data indicates that Service Corp International currently holds a market capitalization of $10.73 billion, illustrating its significant presence in the personal services industry. The company's P/E ratio stands at 21.49, suggesting that investors are willing to pay a higher price for earnings, which may reflect expectations of future growth or a strong market position. Despite this, the company's PEG ratio, a measure that takes into account earnings growth, is 2.38—potentially indicating that the stock may be overvalued considering its near-term earnings growth.

The company's commitment to shareholder returns is evident through its dividend track record, as highlighted by one of the InvestingPro Tips: Service Corp International has not only maintained but has also raised its dividend for 20 consecutive years. This is a strong signal of the company's financial health and its prioritization of returning value to its shareholders.

While the company's short-term obligations exceeding its liquid assets may raise some concerns about its immediate liquidity, it's also worth noting that analysts predict the company will remain profitable this year, which could help alleviate potential liquidity pressures.

For investors seeking further insights, there are additional InvestingPro Tips available for Service Corp International, providing a deeper dive into the company's financial health and future prospects. These tips can be accessed by visiting the InvestingPro platform for SCI at https://www.investing.com/pro/SCI.

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