Beazer Homes USA Inc . (NYSE:BZH) executive Keith L. Belknap Jr., who serves as the company's EVP and General Counsel, has recently sold a significant portion of his stock in the company. Over two consecutive days, Belknap disposed of a total of 29,215 shares, resulting in proceeds of over $830,000.
The transactions, which took place on May 6 and May 7, 2024, were executed at weighted average prices that varied slightly between the two days. On the first day, Belknap sold 15,000 shares at an average price of $28.31 per share. The following day, he sold another 14,215 shares, with the average price slightly higher at $29.07 per share. The sales were made in multiple transactions with prices ranging from $28.00 to $28.53 on the first day and from $29.00 to $29.24 on the second day.
After these transactions, Belknap still holds a substantial number of shares in Beazer Homes USA Inc., with his ownership standing at 181,604 shares following the sales. It's worth noting that the sales reported in this Form 4 were carried out in accordance with a Rule 10b5-1 trading plan that was adopted on February 5, 2024. This rule allows company insiders to set up a predetermined plan to sell company stocks, which can help them avoid accusations of insider trading.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into an executive's perspective on the company's future performance. However, these sales can be motivated by a variety of factors and do not necessarily indicate a negative outlook.
Beazer Homes USA Inc., headquartered in Atlanta, Georgia, operates in the real estate and construction sector, focusing on building and selling homes across the United States.
InvestingPro Insights
As Beazer Homes USA Inc. (NYSE:BZH) navigates the real estate and construction sector, recent insider transactions have drawn attention to the company's financial health and market position. According to InvestingPro, Beazer Homes operates with a significant debt burden, which is a critical factor to consider, especially for investors gauging the company's long-term sustainability.
Moreover, the company's stock price movements have been quite volatile, as indicated by an InvestingPro Tip, which could influence executive decisions on stock transactions. This volatility is reflected in the company’s recent price performance, with a 1 Month Price Total Return as of mid-2024 showing a decrease of -5.76%, yet a 1 Year Price Total Return indicating a robust growth of 38.98%. This contrast may suggest a complex market sentiment towards BZH.
On the valuation front, Beazer Homes is trading at a low earnings multiple, with a P/E Ratio of 5.45 and a slightly adjusted P/E Ratio for the last twelve months as of Q2 2024 at 5.42. This metric could be appealing to value investors looking for potentially undervalued stocks. Furthermore, the company's Revenue for the last twelve months as of Q2 2024 stands at 2146.31M USD, despite a slight Revenue Growth decline of -8.4%.
For investors seeking more comprehensive analyses, there are additional InvestingPro Tips available, including insights on the company's profitability and cash flow yield. For those interested in a deeper dive into Beazer Homes USA Inc.'s financials and market prospects, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This will grant access to a total of 10 InvestingPro Tips, offering an enriched perspective on the company's potential trajectory.
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