Investment firm Cornerstone Investment Partners LLC has made a significant move by acquiring a new position in Insteel Industries, Inc. (NASDAQ: IIIN). During the second quarter, the firm purchased 6,059 shares of the industrial products company, investing approximately $225,000 in the process. This investment reflects an ongoing interest in Insteel by various large institutional investors.
In addition to Cornerstone, other major players have adjusted their stakes in Insteel. For instance, Russell Investments Group Ltd. increased its holdings in the company by an impressive 85.3% during the first quarter, bringing its total to 72,268 shares valued at $1.9 million after acquiring an additional 33,264 shares. Similarly, Principal Financial Group Inc. raised its stake by 2.4%, now holding 96,847 shares worth around $2.5 million after purchasing 2,244 shares.
Moreover, CWM LLC expanded its position by 150.9%, while Grace & White Inc. NY entered a new position valued at approximately $391,000 during the same period. Currently, institutional investors collectively own about 83.27% of Insteel Industries’ stock, underscoring the firm’s strong appeal among investment funds.
Recent Insider Transactions
In related news, James R. York, Senior Vice President of Insteel Industries, sold 3,000 shares of the company on August 22, 2023, for an average price of $38.50, amounting to a total transaction value of $115,500. Following this sale, York retained 9,443 shares, valued at approximately $363,555.50. This sale represented a 24.11% reduction in his ownership. The transaction was duly reported to the U.S. Securities and Exchange Commission (SEC).
Currently, insiders hold 6.00% of Insteel Industries’ stock, indicating a modest presence of company executives and other insiders in the shareholder structure.
Financial Performance and Future Outlook
On October 16, 2023, Insteel Industries released its latest quarterly earnings report, revealing earnings per share (EPS) of $0.74 for the quarter. This result fell short of analysts’ expectations, which had predicted an EPS of $0.79. The company reported a net margin of 3.58% and a return on equity of 5.91%. Compared to the same quarter last year, where it posted $0.24 EPS, this demonstrates substantial growth despite the missed estimates.
Quarterly revenue surged by 32.0% year-over-year, highlighting the company’s strong sales performance. Looking ahead, analysts project that Insteel Industries will post an EPS of $1.38 for the full year, indicating optimism about its financial trajectory.
In addition, Insteel Industries has declared a quarterly dividend of $0.03 per share, which was paid on September 26, 2023, to shareholders on record as of September 12, 2023. This represents an annualized dividend of $0.12 and a yield of 0.4%. The company’s dividend payout ratio currently stands at 5.71%, reflecting its commitment to returning value to shareholders.
About Insteel Industries
Insteel Industries, Inc., along with its subsidiaries, specializes in manufacturing and marketing steel wire reinforcing products essential for concrete construction applications. Its product line includes prestressed concrete strand (PC strand) and welded wire reinforcement (WWR) products. The PC strand, a seven-wire strand, is crucial for imparting compression forces into precast concrete elements, providing necessary reinforcement for various structures, including bridges, parking decks, and buildings.
As the market for construction materials continues to evolve, Insteel Industries remains a pivotal player, with its financial decisions and strategic investments reflecting broader trends within the industrial sector.
