Trinseo director Tomkins sells over $28,000 in company shares

Trinseo PLC (NYSE:TSE) director Mark E. Tomkins has sold a total of 11,142 ordinary shares of the company, according to a recent SEC filing. The transaction, carried out on August 13, 2024, amounted to over $28,000, with shares sold at a weighted average price of $2.54. The sales prices for these shares ranged from $2.50 to $2.56.

Following this transaction, Tomkins still holds 46,724 shares of Trinseo PLC, a global materials company specializing in the production of plastics, synthetic rubber, and latex binders. The company, headquartered in Wayne, Pennsylvania, operates under the ticker symbol TSE on the New York Stock Exchange.

Investors often monitor insider transactions as they can provide insights into an executive's view of the company's future performance. In this case, Tomkins' sale might draw attention from the market participants seeking to understand the current stance of insiders in Trinseo.

The SEC filing also indicated that Tomkins, who serves as a director of the company, executed this sale through direct ownership. Further details on the transaction, including the exact number of shares sold at each price point, can be provided upon request by company staff, security holders, or the SEC.

The filing, signed by attorney-in-fact Angelo Chaclas on behalf of Tomkins, was completed on August 14, 2024, a day after the reported transaction date.

In other recent news, Trinseo, a global materials company, reported Q2 financial results that met market expectations. The earnings report highlighted the company's highest adjusted EBITDA since Q2 2022, despite encountering $10 million in unfavorable net timing impacts. Trinseo's engineered materials segment reportedly saw increased sales volumes, contributing to the financial performance. The company also anticipates positive free cash flow in the latter half of the year, maintaining similar adjusted EBITDA in the third quarter, but expects lower profitability in the fourth quarter due to typical year-end seasonality.

In other developments, Trinseo is initiating the sale of the Americas Styrenics joint venture in the third quarter of 2024 and expects to realize $100 million in cost savings from closing two styrene plants and removing natural gas hedges. The company has also made strides in sustainability with the opening of a PMMA depolymerization facility and advancements in a polycarbonate dissolution pilot facility.

Notably, Trinseo is experiencing growth in the battery market due to technological advancements and has the option to defer a portion of their term loan interest payments to preserve liquidity. However, the company may face headwinds from lower styrene prices and an unplanned plant outage at AmSty in the third quarter.

InvestingPro Insights

As Trinseo PLC (NYSE:TSE) experiences insider transactions, it is crucial for investors to consider the company's financial health and market performance. Recent data from InvestingPro shows that Trinseo operates with a significant debt burden and is quickly burning through cash, which are two critical factors that could be influencing insider decisions.

InvestingPro Data indicates that Trinseo has a market capitalization of $95.81 million, and the company's stock price has been quite volatile, with a price that is currently only 21.68% of its 52-week high. Additionally, the gross profit margin for the last twelve months as of Q2 2024 is relatively low at 5.1%, which might raise concerns about the company's ability to turn revenues into profit.

Moreover, the company's stock has taken a significant hit over the last year, with a one-year price total return of -81.15%. This aligns with an InvestingPro Tip that analysts do not anticipate the company will be profitable this year. With the next earnings date approaching on November 1, 2024, investors will be watching closely to see if there are any changes in the company's financial trajectory.

For those looking to delve deeper into Trinseo's financials and future prospects, InvestingPro provides additional tips on the company's performance. As of now, there are 8 more InvestingPro Tips available, which can offer further insights into Trinseo's valuation, cash flow yield, and profitability over the last twelve months. These tips can be accessed at InvestingPro's dedicated page for Trinseo, offering valuable information for investors considering the company's stock.

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