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In a recent move demonstrating confidence in Superior Group of Companies, Inc. (NASDAQ:SGC), CEO Michael Benstock acquired 10,000 shares of the company's common stock. The transaction, dated August 16, 2024, saw the executive purchase the shares at a weighted-average price of $13.4527, amounting to a total investment of $134,527.
The shares were bought in a series of transactions with prices ranging from $13.34 to $13.52. This purchase has increased Benstock’s direct holdings to 583,848 shares, as indicated in the latest filing with the Securities and Exchange Commission. It's worth noting that some of these shares are restricted stock awards and are still subject to forfeiture. Specifically, 187,463 shares remain at risk of forfeiture as of the filing date.
The disclosure also mentioned that Benstock has indirect ownership through an irrevocable trust and shares owned by his spouse, totaling 397,006 and 22,000 shares respectively. However, it's important to clarify that Benstock disclaims beneficial ownership of the shares held in the trust.
This recent acquisition by the CEO of Superior Group of Companies is a significant addition to his already substantial stake in the company. The transaction details, including the exact number of shares purchased at each price within the reported range, are available upon request to the issuer, any security holder of the issuer, or any staff member of the Securities and Exchange Commission.
In other recent news, Superior Group of Companies has made significant moves in financial management and strategic investments. The company announced a new stock repurchase initiative, with the board authorizing a buyback of up to $10 million of its common stock over the next year. This move comes as part of Superior Group's ongoing efforts to manage its capital and enhance value for its shareholders.
In terms of financial performance, the company reported a 2% revenue increase to $132 million in Q2 2024, although this fell short of expectations due to market and supply chain disruptions. However, the full-year outlook remains unchanged, projecting revenues between $563 million and $570 million, and earnings per diluted share from $0.73 to $0.79. The company also improved its net leverage ratio to 1.7 times trailing 12-month covenant EBITDA, down from 3.7 times the previous year.
Despite challenges in the healthcare apparel segment, which saw a 5% decrease in revenue, the branded products and contact centers segments reported increases of 2% and 9%, respectively. These recent developments suggest Superior Group's commitment to strategic investments for market share expansion and confidence in maintaining consistent gross margins. While facing market and supply chain challenges, the company anticipates a strong third and fourth quarter, driven by seasonality and supply chain recovery.
InvestingPro Insights
Following the news of CEO Michael Benstock's recent stock purchase, Superior Group of Companies, Inc. (NASDAQ:SGC) exhibits several characteristics that merit attention from investors. An InvestingPro Tip highlights the company's history of rewarding shareholders, as SGC has raised its dividend for three consecutive years and maintained dividend payments for an impressive 48 years in a row. This consistent return to shareholders is particularly noteworthy in a market where steady dividend payers are highly regarded.
From a valuation standpoint, SGC's P/E Ratio stands at 18.88, with an adjusted P/E Ratio for the last twelve months as of Q2 2024 at 19.6. The company's market capitalization is currently $219.24 million, reflecting its standing in the market. Moreover, SGC's dividend yield is an attractive 4.28%, which is generous compared to many industry peers.
Despite recent price volatility, indicated by a 1-month price total return of -33.22% and a 3-month price total return of -32.4%, InvestingPro Tips suggest that the stock is in oversold territory, with a Relative Strength Index (RSI) implying potential for a rebound. Additionally, analysts have revised their earnings upwards for the upcoming period, indicating optimism about the company's financial prospects.
Investors interested in further analysis and tips can find additional insights on InvestingPro, with 12 more tips currently available for SGC at https://www.investing.com/pro/SGC, including detailed metrics on profitability and liquidity.
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