MIAMI—Richard A. Kassar, a director at World Kinect Corp (NYSE:WKC), recently sold 20,000 shares of the company's common stock. The transaction, which took place on October 30, was executed at a price of $26.10 per share, amounting to a total sale value of $522,000.
Following this transaction, Kassar holds 57,087 shares directly in the company. World Kinect Corp, formerly known as World Fuel Services (NYSE:WKC) Corp, is based in Miami and operates in the wholesale petroleum and petroleum products industry.
In other recent news, World Kinect Corporation has reported growth in its Aviation and Marine segments despite a challenging market environment. The company's third-quarter earnings call revealed a year-over-year decrease in gross profit and total volume, but highlighted strategic initiatives aimed at improving profitability. These include a reduction in operating and interest expenses, a substantial share repurchase program, and expansion of low carbon initiatives.
The company's total volume for the quarter reached $4.4 billion, with a gross profit of $268 million, marking a 5% decrease year-over-year. However, World Kinect anticipates a Q4 gross profit between $253 million and $260 million. The Aviation segment's operating margin experienced double-digit growth, while the Marine segment's gross profit increased by 8% year-over-year.
World Kinect also announced personnel changes, including the departure of investor relations leader Elsa Ballard. The company repurchased $28 million in shares during the quarter, increasing the total share repurchase for the year to $57 million. Looking ahead, World Kinect aims to enhance operating margins and profitability through strategic mergers and acquisitions, with a focus on the North American market.
InvestingPro Insights
The recent insider sale by Richard A. Kassar at World Kinect Corp (NYSE:WKC) comes at a time when the company's stock presents a mixed picture for investors. According to InvestingPro data, WKC's market capitalization stands at $1.53 billion, with a price-to-earnings ratio of 11.64, suggesting a potentially undervalued stock relative to earnings.
InvestingPro Tips highlight that WKC has maintained dividend payments for an impressive 31 consecutive years, demonstrating a strong commitment to shareholder returns. This is further underscored by a current dividend yield of 2.6% and a notable dividend growth of 21.43% over the last twelve months. These factors may provide some reassurance to investors in light of the insider sale.
However, the company faces challenges, as evidenced by a revenue decline of 10.44% in the last twelve months and a quarterly revenue drop of 14.33%. The gross profit margin is also a concern at just 2.25%, which aligns with the InvestingPro Tip indicating that WKC suffers from weak gross profit margins.
Despite these headwinds, WKC's stock has shown resilience with a one-year price total return of 43.16%, although it has experienced a 15.07% decline in the past month. This recent dip is reflected in another InvestingPro Tip suggesting that the stock's RSI indicates it may be in oversold territory, potentially presenting a buying opportunity for value investors.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for World Kinect Corp, providing a more comprehensive view of the company's financial health and market position.
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