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Bruce Leeds, Vice Chairman of Global Industrial Co (NYSE:GIC), a $1.1 billion market cap industrial distributor with a "Good" financial health rating according to InvestingPro, has recently sold shares in the company, according to a filing with the Securities and Exchange Commission. The stock, which currently appears undervalued based on InvestingPro's Fair Value model, has declined about 25% year-to-date. On November 26, Leeds sold 5,840 shares of common stock at an average price of $28.281 per share, totaling approximately $165,161.
Following this transaction, Leeds holds no shares directly, but maintains indirect ownership of several other holdings through trusts and partnerships. These include 9,944,429 shares by trusts for his family, 2,500,000 shares by a grantor retained annuity trust, 378,383 shares by partnerships, 3,740 shares by the Bruce Leeds Declaration of Trust, and 1,414 shares by an LLC.
In other recent news, Global Industrial reported a decrease in Q3 revenue to $342.4 million, a 3.4% drop from the same period last year. The company attributed this dip to weak demand in the small and medium-sized business sector and cautious customer purchasing behavior. However, Global Industrial managed to improve its gross margin to 34% and maintained a strong balance sheet with significant cash reserves and no debt.
Furthermore, the company is implementing a new CRM system, Salesforce (NYSE:CRM), to enhance customer engagement. Despite the revenue decline, Global Industrial continues to focus on long-term benefits, expecting the demand softness to extend into Q4. The company's strong balance sheet, with $38.9 million in cash and no debt, provides a stable foundation for future investments and for maintaining its quarterly dividend of $0.25 per share.
These developments underscore Global Industrial's commitment to operational excellence and enhancing customer experience as a strategy for long-term growth, despite the ongoing softness in demand. The company's strategic account business continues to show solid growth, and high customer satisfaction is maintained. Current market conditions are being navigated with careful cost management and optimization efforts.
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