Options Exercise: Barry A Bruno At Church & Dwight Co Realizes $551K

A significant insider transaction involving the exercise of company stock options was reported on March 14, by Barry A Bruno, EVP at Church & Dwight Co CHD, as per the latest SEC filing.

What Happened: Bruno, EVP at Church & Dwight Co, made a strategic move by exercising stock options for 9,926 shares of CHD as detailed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission. The transaction value amounted to $551,885.

As of Thursday morning, Church & Dwight Co shares are down by 0.19%, with a current price of $105.22. This implies that Bruno's 9,926 shares have a value of $551,885.

About Church & Dwight Co

Church & Dwight is the leading global producer of baking soda. Beyond baking soda, the products in its portfolio have vast category reach, including laundry products, cat litter, oral care, deodorant, and nasal care, all sold under the Arm & Hammer brand. Its mix also includes Xtra, Trojan, OxiClean, First Response, Nair, L'il Critters/Vitafusion, Orajel, and WaterPik, which together with Arm & Hammer constitute more than 80% of its annual sales and profits. In early 2019, the firm announced the addition of Flawless, which manufactures electric shaving products for women. At the end of 2020, the firm acquired Zicam, a leading brand in the cough/cold-shortening category. Church & Dwight derives more than 80% of its sales from its home market in the U.S.

A Deep Dive into Church & Dwight Co's Financials

Revenue Growth: Church & Dwight Co displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 6.41%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 44.59%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Church & Dwight Co's EPS reflects a decline, falling below the industry average with a current EPS of 0.63.

Debt Management: With a below-average debt-to-equity ratio of 0.62, Church & Dwight Co adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 34.56 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.45 is above industry norms, reflecting an elevated valuation for Church & Dwight Co's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Church & Dwight Co's EV/EBITDA ratio, surpassing industry averages at 21.3, positions it with an above-average valuation in the market.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Uncovering the Importance of Insider Activity

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Cracking Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Church & Dwight Co's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.