Matthew Farrell At Church & Dwight Co Decides to Exercises Options Worth $15.43M

On November 7, it was revealed in an SEC filing that Matthew Farrell, President and CEO at Church & Dwight Co CHD executed a significant exercise of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Farrell, President and CEO at Church & Dwight Co, a company in the Consumer Staples sector, just exercised stock options worth 300,000 shares of CHD stock with an exercise price of $51.89.

Currently, Church & Dwight Co shares are trading down 0.0%, priced at $103.21 during Thursday's morning. This values Farrell's 300,000 shares at $15,432,341.

Unveiling the Story Behind 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 Batiste, OxiClean, Vitafusion, WaterPik, Hero, and TheraBreath, which together with Arm & Hammer constitute around 70% of its annual sales and profits. 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: A Financial Overview

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 3.76% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 45.22%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Church & Dwight Co's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.31.

Debt Management: Church & Dwight Co's debt-to-equity ratio is below the industry average. With a ratio of 0.53, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Church & Dwight Co's P/E ratio of 46.28 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.21, Church & Dwight Co's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 25.9 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

The Insider's Guide to Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.

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