Rene Hemsey At Church & Dwight Co Executes Options Exercise, Realizing $708K

Highlighted on March 13, it was unveiled in an SEC filing that Hemsey, EVP at Church & Dwight Co CHD, executed a significant transaction involving the exercise of company stock options.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday revealed that Hemsey, EVP at Church & Dwight Co in the Consumer Staples sector, exercised stock options for 11,060 shares of CHD stock. The exercise price of the options was $45.51 per share.

As of Thursday morning, Church & Dwight Co shares are up by 0.5%, with a current price of $109.57. This implies that Hemsey's 11,060 shares have a value of $708,506.

Get to Know Church & Dwight Co Better

Church & Dwight is the leading global producer of baking soda. Its portfolio extends beyond its legacy category to include 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 grow the reach of its products, Church & Dwight still derives around 80% of its sales from its home market in the US.

Breaking Down Church & Dwight Co's Financial Performance

Revenue Growth: Church & Dwight Co's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 3.53%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Staples sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 44.75%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Church & Dwight Co's EPS is below the industry average. The company faced challenges with a current EPS of 0.77. This suggests a potential decline in earnings.

Debt Management: Church & Dwight Co's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.51.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Church & Dwight Co's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 46.0.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.41 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): At 25.73, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

A Closer Look at 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.