Service Corp International director sells $371k in stock

Service Corp International (NYSE:SCI), a leading provider of deathcare products and services, has reported a recent transaction involving a company director. Tony Coelho, a member of the company’s board, sold 4,750 shares of common stock at a price of $78.17 per share. The total value of the transaction amounted to approximately $371,306.

The sale, which took place on September 5, 2024, was filed with the Securities and Exchange Commission and reflects a notable trading activity within the company's stock by one of its directors. Following the transaction, Coelho's remaining holdings in Service Corp International consist of 55,879 shares of common stock, directly owned, and an additional 12,200 shares indirectly held through a Deferred Compensation Plan.

Investors often monitor insider transactions as they can provide insights into the perspectives of high-level executives and board members on the company's current valuation and future prospects. Although the reasons for Coelho's sale were not disclosed, such transactions are a regular part of personal portfolio management for individuals in his position.

Service Corp International, headquartered in Houston, Texas, operates in the personal services industry and is known for its network of funeral service locations and cemeteries. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol SCI.

This recent filing provides current and potential investors with updated information on insider transactions, which can be an important factor to consider in their investment decisions.

In other recent news, Service Corporation International (SCI) has announced a quarterly cash dividend of $0.30 per share, set for payment to registered shareholders later this year. The company has also reported a slight decrease in its adjusted earnings per share (EPS) for Q2 2024 to $0.79, a reduction attributed to a 2.7% dip in funeral volumes. However, this was partially offset by increased cemetery profits, which rose by $5 million. SCI's adjusted operating cash flow also increased by $62 million from the previous year, reaching $220 million.

Despite the challenges, SCI maintains a positive outlook, projecting revenue and margin growth in both funeral and cemetery segments in the latter half of 2024. The company also anticipates a return to EPS growth in 2025, with projections towards the higher end of its historical annual guidance range of 8% to 12%. These recent developments highlight SCI's strategic approach to navigating the deathcare industry's challenges and its dedication to future growth.

SCI's Q2 2024 financial performance reflects the ongoing opportunities and challenges within the deathcare industry. Despite the decline in funeral volumes, the company's strategic initiatives, including investments in technology, signal a commitment to adapting to market conditions and driving future growth.

InvestingPro Insights

Service Corp International (NYSE:SCI) has demonstrated a consistent approach to shareholder returns, with an impressive track record of raising its dividend for 10 consecutive years. This consistency is further solidified by the company's ability to maintain dividend payments for two decades, underscoring its commitment to delivering value to its shareholders. For investors looking for stability in dividend income, these facets of SCI's financial discipline may be particularly appealing.

On the valuation front, SCI is currently trading at a high Price/Earnings (P/E) ratio of 22.97, which is slightly reduced from the last twelve months as of Q2 2024, standing at 22.57. This valuation suggests a premium relative to near-term earnings growth, as indicated by the company's Price/Earnings to Growth (PEG) ratio of 2.5. Moreover, the stock is trading near its 52-week high, with price at 98.47% of this peak, reflecting strong investor confidence and market performance over the past year.

From a financial health perspective, it's worth noting that Service Corp International's short-term obligations currently exceed its liquid assets, which could be an area for investors to watch closely. With 5 analysts having revised their earnings downwards for the upcoming period, it's important for investors to stay informed about the company's future earnings potential. For those interested in a deeper dive into the company's prospects, InvestingPro offers additional insights, with a total of 9 InvestingPro Tips available for Service Corp International at https://www.investing.com/pro/SCI.

Investors may also consider the company's recent revenue growth, which stands at 2.21% for the last twelve months as of Q2 2024, and the gross profit margin of 25.95%, which highlights the company's ability to maintain profitability. As investors evaluate the insider selling activity by director Tony Coelho, these financial metrics and InvestingPro Tips provide a broader context to assess the company's overall health and future outlook.

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