Insider Decision: Joseph James Longo Exercises Options At Church & Dwight Co For $287K

In a new SEC filing on November 25, it was revealed that Longo, VP at Church & Dwight Co CHD, executed a significant exercise of company stock options.

What Happened: A notable Form 4 filing on Monday with the U.S. Securities and Exchange Commission revealed that Longo, VP at Church & Dwight Co, exercised stock options for 7,780 shares of CHD, resulting in a transaction value of $287,081.

Church & Dwight Co shares are currently trading up by 0.33%, with a current price of $110.77 as of Tuesday morning. This brings the total value of Longo's 7,780 shares to $287,081.

Discovering Church & Dwight Co: A Closer Look

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.

A Deep Dive into Church & Dwight Co's Financials

Revenue Growth: Church & Dwight Co's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 3.76%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 45.22%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Church & Dwight Co's EPS is below the industry average. The company faced challenges with a current EPS of -0.31. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 0.53, Church & Dwight Co adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 49.51, Church & Dwight Co's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.5 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): A high EV/EBITDA ratio of 27.61 reflects market recognition of Church & Dwight Co's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Activity Matters in Finance

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

The Insider's Guide to Important 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.

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