HOUSTON—Max Reichenthal, a director at Friedman Industries Inc. (NYSE:FRD), recently acquired 2,000 shares of the company's common stock. The purchase took place on November 20, 2024, at a price of $13.72 per share, amounting to a total of $27,440. Following this transaction, Reichenthal now holds 32,761 shares directly. This move by a company insider may draw attention from investors monitoring insider trading activities.
Friedman Industries, based in Longview, Texas, operates in the steel manufacturing sector. The company is involved in steel works, blast furnaces, and rolling and finishing mills.
In other recent news, Friedman Industries Incorporated, a Texas-based steel company, has been actively making strategic decisions. The company has announced a new executive severance plan designed to maintain stability during potential significant corporate transitions. The severance plan, approved by the board, provides key executives with a one-time bonus and other benefits if they leave the company under specific conditions surrounding a change in control.
In addition to this, during its Annual Meeting of Shareholders, seven directors, including Michael J. Taylor, who received the highest number of votes, were elected to the Board of Directors. However, a proposed amendment to the company's Articles of Incorporation, which would have allowed shareholders to amend the Bylaws, did not receive the necessary two-thirds majority and was rejected.
Furthermore, Friedman Industries continues its tradition of distributing dividends, announcing a regular cash dividend of $0.04 per share, marking its 211th consecutive quarterly cash dividend since its public market debut in 1972. The Board of Directors reviews the dividend policy quarterly, emphasizing the company's financial standing and operational performance. These are the latest developments in the company's recent activities.
InvestingPro Insights
Following Max Reichenthal's recent insider purchase, it's worth examining Friedman Industries' financial health and market performance. According to InvestingPro data, Friedman Industries reported revenue of $469.51 million in the last twelve months, with a gross profit of $56.96 million. Despite a revenue decline of 6.86% over the same period, the company maintains a gross profit margin of 12.13%.
An InvestingPro Tip highlights that Friedman Industries has maintained dividend payments for 52 consecutive years, showcasing its commitment to shareholder returns. This long-standing dividend history aligns with the company's current dividend yield of 1.18%, as of the most recent data. Another InvestingPro Tip notes that the company operates with a moderate level of debt, which could be seen as a positive factor in the current economic environment.
While the company's 1-year price total return stands at 12.18%, recent performance has been challenging, with a 6-month price total return of -24.78%. This context adds significance to the insider purchase, as it may signal confidence in the company's future prospects despite recent market pressures.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 5 more tips for Friedman Industries beyond those mentioned here.
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