LAKE FOREST, IL—Rolf Stangl, a director at Reynolds Consumer Products Inc . (NASDAQ:REYN), recently purchased a total of 7,207 shares of the company's common stock, according to a recent SEC filing. The transactions, which took place on November 1, involved buying 3,636 shares at a weighted average price of $27.2577 per share, and an additional 3,571 shares at a weighted average price of $27.2387 per share. These purchases, executed in multiple transactions, amounted to a total investment of approximately $196,378. Following these acquisitions, Stangl now directly owns 7,207 shares of Reynolds Consumer Products.
In other recent news, Reynolds Consumer Products Inc. announced its third-quarter earnings, with total revenues hitting $910 million and adjusted EBITDA rising to $171 million. The company also reported an 11% increase in earnings per share to $0.41. A change in leadership is on the horizon, with Scott Huckins set to take the helm as President and CEO, and Nathan Lowe stepping in as CFO from January 1, 2025.
The company's full-year revenue outlook has been slightly raised, now expected to fall between $3.620 billion and $3.660 billion. Adjusted EBITDA guidance for the year has been adjusted to a range of $673 million to $683 million. However, Reynolds Consumer Products anticipates Q4 2024 net revenue to be lower than Q4 2023's $1.007 billion.
Analysts noted the company's challenges with declining foam plate volumes due to legislative changes and shifts toward sustainable products, as well as higher resin prices impacting profits. Yet, the Reynolds Cooking & Baking segment has gained market share, performing well with younger consumers, and other disposable tableware categories have shown modest growth. The company has not established specific projections for 2025 but expects low single-digit growth long-term, despite current challenges.
InvestingPro Insights
Rolf Stangl's recent purchase of Reynolds Consumer Products Inc. (NASDAQ:REYN) shares comes at an interesting time for the company. According to InvestingPro data, REYN's stock is currently trading near its 52-week low, with a price that is 83.37% of its 52-week high. This aligns with an InvestingPro Tip suggesting that the stock has taken a big hit over the last week, with a 1-week price total return of -8.69%.
Despite the recent downturn, REYN's fundamentals appear solid. The company's P/E ratio stands at 15.4, which an InvestingPro Tip indicates is low relative to its near-term earnings growth. This could suggest that the stock might be undervalued at current levels. Additionally, REYN boasts a dividend yield of 3.38%, which may be attractive to income-focused investors.
It's worth noting that REYN's financial health seems robust, with liquid assets exceeding short-term obligations, as highlighted by another InvestingPro Tip. This financial stability, combined with the company's profitability over the last twelve months, may have influenced Stangl's decision to increase his stake.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips on REYN, providing deeper insights into the company's financial position and market performance.
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