Ingredion director acquires $39.9k in stock, disposes of $7.6k By Investing.com

Ingredion Inc (NYSE:) director Jorge A. Uribe reported a recent series of transactions in the company’s stock, according to a Form 4 filing with the Securities and Exchange Commission. Uribe acquired shares worth approximately $39,999 and sold shares to cover taxes totaling about $7,560.

On June 28, 2024, Uribe purchased 346.7406 shares of Ingredion common stock at a price of $115.36 per share. These shares, issued as part of the annual retainer for the company’s outside directors, increased his total holdings to 12,705.3165 shares post-transaction. In a concurrent move, Uribe disposed of 65.534 shares at the same price per share to satisfy tax obligations. Additionally, a minor transaction involving the sale of fractional shares resulted in a cash settlement of $23.

After these transactions, Uribe’s direct ownership in Ingredion Inc stands at 12,639.5759 shares. The filing also disclosed indirect ownership of 4,404 shares through Cafedan Investments Ltd Trust.

Investors often keep a close eye on insider transactions as they can provide insights into executives’ perspectives on the company’s current valuation and future prospects. Ingredion Inc, headquartered in Westchester, Illinois, operates in the grain mill products industry and is known for its manufacturing in the sector.

In other recent news, Ingredion Incorporated announced a hike in its EPS guidance following a first-quarter earnings per share (EPS) of $2.08, slightly exceeding the consensus estimate. This adjustment has led BMO Capital Markets to increase its price target for Ingredion shares to $120, maintaining a Market Perform rating. The company’s first-quarter performance also saw a 12% decline in net sales year-over-year, yet it reported the second-highest operating income in its history.

Ingredion has outlined plans for a $50 million cost savings initiative by 2025 and anticipates an acceleration in its stock buyback program. The company also announced the appointment of Dr. Michael Leonard as Senior Vice President, Chief Innovation Officer, and Head of Protein Fortification. BMO Capital’s analysts expressed confidence in Ingredion’s ability to reach the higher end of its 2024 earnings outlook, supported by the company’s incremental efficiencies and the expected impact of share repurchases.

However, they noted that the benefits are likely to be more pronounced in the second half of the year, as the second-quarter guidance falls short of their forecasts. These developments reflect recent changes in Ingredion’s financial guidance and strategic direction.

InvestingPro Insights

Following the recent insider transactions at Ingredion Inc (NYSE:INGR), investors may find additional context through key metrics and insights from InvestingPro. The company, with its market capitalization at $7.38 billion and a robust dividend track record, showcases financial stability and commitment to shareholder returns. Notably, Ingredion has a commendable P/E ratio of 11.09, indicating a potentially undervalued stock relative to its earnings. Moreover, the company’s PEG ratio, standing at 0.54 for the last twelve months as of Q1 2024, suggests that its stock price is modest in relation to its earnings growth.

Ingredion’s dedication to its shareholders is further exemplified by its perfect Piotroski Score of 9, reflecting strong financial health, and its history of raising dividends for 13 consecutive years, with a current dividend yield of 2.74%. In addition to these attractive dividend metrics, Ingredion also has a high shareholder yield, which is a positive signal for investors seeking income through dividends and share repurchases. Furthermore, the company’s valuation implies a strong free cash flow yield, reinforcing its financial flexibility and ability to generate investor value.

For those interested in a deeper dive into Ingredion’s financials and future outlook, InvestingPro offers an array of additional insights. Currently, there are 11 more InvestingPro Tips available, which could provide a more comprehensive understanding of the company’s performance and potential. To access these valuable tips, visit InvestingPro and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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