FORT WAYNE, IN—Gregg C. Sengstack, the Executive Chairperson of Franklin Electric Co. Inc. (NASDAQ:FELE), recently sold 1,500 shares of the company's common stock. The shares were sold at an average price of $100.215 each, amounting to a total transaction value of $150,322. Following this sale, Sengstack retains 9,032 shares held indirectly through the Sengstack Family Foundation, where he holds sole voting and dispositive power.
The transaction was reported in a recent SEC Form 4 filing, which also detailed Sengstack's various holdings. These include 98,093 shares directly owned, and additional shares held indirectly through various trusts, including the Gregg Sengstack 2020 Dynasty Trust and the Dianne Sengstack 2020 Dynasty Trust, among others.
In other recent news, Franklin Electric reported a slight decrease in consolidated sales to $531 million in the third quarter of 2024, amid a challenging market. Despite a drop in sales for Fueling Systems and large dewatering equipment, the company's Water Systems segment saw a record operating income of $52.8 million, buoyed by strong demand for groundwater and water treatment products. The firm's overall gross profit margin improved, while selling, general, and administrative expenses rose due to increased compensation costs and CEO transition expenses. The firm also reported a decrease in earnings per share from $1.23 to $1.17 compared to the previous year and revised its full-year guidance.
On the positive side, Franklin Electric announced a quarterly cash dividend of $0.25. The company's management is optimistic about improved conditions in 2025, with a focus on innovation and addressing critical water needs. They plan to streamline costs and expect free cash flow conversion to exceed 100% by year-end. Interestingly, over 20% of the market cap is available for potential mergers and acquisitions activities. These are among the recent developments for Franklin Electric.
InvestingPro Insights
Franklin Electric Co. Inc. (NASDAQ:FELE) continues to demonstrate financial strength and stability, as evidenced by recent data from InvestingPro. The company's market capitalization stands at $5.02 billion, reflecting its substantial presence in the industrial machinery sector.
One of the most notable InvestingPro Tips for Franklin Electric is its impressive dividend history. The company has raised its dividend for 32 consecutive years, showcasing a strong commitment to shareholder returns. This aligns well with the recent insider transaction, as it suggests that despite the sale by Executive Chairperson Gregg C. Sengstack, the company maintains a shareholder-friendly approach.
Additionally, Franklin Electric operates with a moderate level of debt, and its liquid assets exceed short-term obligations. These factors contribute to the company's financial stability and may provide reassurance to investors in light of the insider sale.
The company's P/E ratio of 27.22 indicates that investors are willing to pay a premium for Franklin Electric's earnings, possibly due to its consistent dividend growth and solid financial position. Moreover, with a gross profit margin of 35.5% for the last twelve months as of Q3 2023, Franklin Electric demonstrates its ability to maintain profitability in its operations.
It's worth noting that Franklin Electric is trading near its 52-week high, with the current price at 93% of the 52-week peak. This performance, coupled with a one-year price total return of 16.18%, suggests strong market confidence in the company's prospects.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 9 more tips available for Franklin Electric. These tips could provide valuable context for understanding the company's recent insider transaction and overall financial health.
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