American Woodmark director James G. Davis sells $100,989 in stock

Published 30/12/2024, 15:04
American Woodmark director James G. Davis sells $100,989 in stock

James G. Davis, a director at American Woodmark Corp (NASDAQ:AMWD), recently sold 1,250 shares of the company's common stock. The shares were sold on December 27 at a weighted average price of $80.7916, with prices ranging from $80.695 to $80.925. This transaction totaled $100,989. Following the sale, Davis holds 24,573 shares in the company, representing a stake in the $1.22 billion market cap company. While this insider sale occurs with the stock trading near its 52-week low, InvestingPro analysis reveals management has been actively buying back shares, and the stock appears undervalued based on Fair Value calculations. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report covering American Woodmark's financial health, valuation metrics, and growth prospects.

In other recent news, American Woodmark Corporation has been facing challenging market conditions. The company reported a 4.5% year-over-year decline in net sales for Q2 FY2025, amounting to $452.5 million, attributed to reduced demand in the remodel market and a slowdown in new construction single-family starts. The adjusted EBITDA stood at $60.2 million, accounting for 13.3% of net sales, and earnings per share were reported at $1.79.

Despite these challenges, Baird maintained an Outperform rating on American Woodmark's stock, citing the company's potential for long-term growth and strategic capital deployment. The firm also increased its price target for American Woodmark to $118 from the previous $115.

American Woodmark has been actively repurchasing its shares, with over 10% bought back over the past six quarters, a strategy seen as enhancing shareholder value and improving earnings per share. Additionally, the company is focusing on growth, digital transformation, and platform design to navigate the current market conditions.

The company's leadership remains confident in the long-term strength of the housing market and is implementing strategic initiatives such as operational excellence and cost management to mitigate challenges. Significant progress has been made with facilities in Monterrey, Mexico, and Hamlet, North Carolina. These are the recent developments surrounding American Woodmark Corporation.

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