Superior group of companies director sells $204,028 in stock

Andrew D. DeMott Jr., a director at Superior Group of Companies, Inc. (NASDAQ:SGC), sold 12,500 shares of the company's common stock on November 14. The shares were sold at an average price of $16.3223, resulting in a total transaction value of approximately $204,028. Following this sale, DeMott holds 205,281 shares, with 11,303 of these shares subject to forfeiture under restricted stock awards.

In other recent news, Superior Group of Companies reported strong third-quarter results, achieving its highest quarterly revenue for core products at $150 million, a 10% increase from the previous year. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 26% to $11.7 million, and diluted earnings per share (EPS) rose from $0.19 to $0.33. These developments were led by an 11% growth in both the Healthcare Apparel and Branded Products segments.

Furthermore, the company repurchased $6.3 million in shares during the quarter. Despite potential challenges, such as customer hesitancy and global logistics issues, Superior Group of Companies reaffirmed its full-year 2024 revenue expectations at $563 million to $570 million, with EPS guidance of $0.73 to $0.79.

In a bid to bolster its branded products and call centers, the company is actively exploring acquisition opportunities. It's also focusing on long-term growth strategies, including potential investments in sales talent and marketing for their direct-to-consumer launch. These recent developments signify Superior Group of Companies' robust financial position and strategic planning to address market challenges.

InvestingPro Insights

The recent insider sale by Andrew D. DeMott Jr. comes at a time when Superior Group of Companies (NASDAQ:SGC) is showing mixed financial signals. According to InvestingPro data, SGC's market capitalization stands at $267.34 million, with a P/E ratio of 19.38, suggesting a moderate valuation relative to earnings.

Notably, SGC has demonstrated strong performance in recent months, with a 3-month price total return of 25.22% and a 1-year price total return of 50.65%. This impressive growth aligns with one of the InvestingPro Tips, which highlights SGC's "Strong return over the last three months."

Despite the insider sale, there are positive indicators for investors to consider. SGC boasts a dividend yield of 3.45%, and an InvestingPro Tip reveals that the company "Has maintained dividend payments for 48 consecutive years." This long-standing commitment to shareholder returns could be attractive to income-focused investors.

Furthermore, SGC's financial health appears solid, with another InvestingPro Tip noting that "Liquid assets exceed short term obligations." This suggests the company is well-positioned to meet its short-term financial commitments.

For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Superior Group of Companies. These tips could provide valuable context for understanding the company's financial position and future prospects.

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