RB global chief legal officer sells $395,900 in stock

In recent transactions reported to the Securities and Exchange Commission, Darren Jeffrey Watt, Chief Legal Officer at RB Global Inc. (NYSE:RBA), executed a series of stock transactions involving the company’s common shares. On June 11, Watt sold 3,700 shares at a price of $107 each, totaling $395,900. The transaction comes as RBA, now a $19.9 billion market cap company, trades near its 52-week high of $109.25, having delivered an impressive 34.5% return over the past year.

These sales followed an option exercise on June 10, where Watt acquired 3,700 shares at a price of $32.16 per share. Post-transaction, Watt holds 24,874 shares directly in the company. Additionally, Watt maintains 2,861 shares indirectly through an Employee Stock Purchase Plan. According to InvestingPro analysis, RBA is currently trading at elevated valuation multiples, suggesting the stock may be overvalued. Discover more insights and 12 additional ProTips with an InvestingPro subscription.

These transactions are part of a prearranged trading plan under SEC Rule 10b5-1, which allows company insiders to set up a predetermined schedule for buying or selling stock.

In other recent news, RB Global Inc. has received an upgrade in its corporate family rating from Moody’s, moving from Ba2 to Ba1. This decision was influenced by the company’s successful deleveraging efforts, which involved reducing absolute debt and increasing earnings. The acquisition of IAA, Inc. in 2023 has further contributed to improved margins and enhanced business diversification for RB Global. Additionally, the senior secured ratings on the company’s bank credit facilities have been upgraded to Ba1, reflecting a stable outlook for the future. Moody’s analyst, Jamie Koutsoukis, noted that RB Global’s strong position in industrial equipment and auto salvage auctions, along with its multichannel strategy, has been instrumental in this upgrade.

The company has also demonstrated its ability to generate free cash flow, even during economic downturns, particularly in the commercial construction and transportation segments. In March, RB Global announced an agreement to acquire J.M. Wood Auction Co., Inc. for $235 million, further expanding its market presence. The company’s liquidity remains robust, with sources of liquidity around $1.8 billion compared to uses of approximately $290 million. The stable rating outlook suggests continued focus on debt reduction and organic revenue growth.

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