Major Exercise Alert: Robert K Shearer Exercises Options Worth $745K At Church & Dwight Co

Highlighted on May 9, it was unveiled in an SEC filing that Shearer, Board Member at Church & Dwight Co CHD, executed a significant transaction involving the exercise of company stock options.

What Happened: The latest Form 4 filing on Thursday with the U.S. Securities and Exchange Commission uncovered Shearer, Board Member at Church & Dwight Co, exercising stock options for 13,200 shares of CHD. The total transaction was valued at $745,800.

Church & Dwight Co shares are currently trading down by 0.0%, with a current price of $106.78 as of Thursday morning. This brings the total value of Shearer's 13,200 shares to $745,800.

All You Need to Know 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 around 70% of its annual sales and profits. And the firm added TheraBreath mouthwash and Hero pimple patches to its mix the past couple of years. Even as it works to extend the reach of its products, Church & Dwight still derives more than 80% of its sales from its home market in the US.

Church & Dwight Co: Delving into Financials

Positive Revenue Trend: Examining Church & Dwight Co's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.14% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company excels with a remarkable gross margin of 45.7%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Church & Dwight Co's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.94.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.54.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 33.79, Church & Dwight Co's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 4.45 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 21.22, Church & Dwight Co demonstrates exemplary market valuation, surpassing industry averages.

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

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Transaction Codes Worth Your Attention

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.