Cornerstone Investment Partners LLC has made a significant investment in Insteel Industries, Inc., acquiring a position valued at approximately $225,000. This purchase, which occurred during the second quarter, involved 6,059 shares of the industrial products company, as reported by Holdings Channel. The move highlights increasing interest in Insteel Industries, particularly among large institutional investors.
Several other investment firms have also adjusted their stakes in Insteel Industries. For instance, Russell Investments Group Ltd. raised its ownership by 85.3% in the first quarter, bringing its total to 72,268 shares valued at around $1.9 million. This increase followed the acquisition of an additional 33,264 shares. Similarly, Principal Financial Group Inc. augmented its stake by 2.4%, now holding 96,847 shares worth approximately $2.5 million after purchasing 2,244 shares.
In addition, CWM LLC expanded its investment in Insteel Industries by an impressive 150.9%, acquiring an additional 2,853 shares to reach a total of 4,744 shares, valued at $125,000. Other notable investors include Grace & White Inc. NY, which established a new position valued at around $391,000. Currently, institutional investors hold 83.27% of Insteel’s stock.
Insider Trading and Company Performance
In related news, James R. York, the Senior Vice President of Insteel Industries, sold 3,000 shares on August 22, 2023, at an average price of $38.50, totaling $115,500. Following this transaction, York’s ownership decreased by 24.11%, leaving him with 9,443 shares valued at approximately $363,555.50. Company insiders currently own 6.00% of the stock.
On October 16, 2023, Insteel Industries released its quarterly earnings report, revealing earnings per share (EPS) of $0.74, which fell short of analysts’ expectations of $0.79 by $0.05. The company’s net margin stood at 3.58%, with a return on equity of 5.91%. In comparison, the same quarter last year saw an EPS of $0.24. Revenue for the quarter increased by 32.0% year-over-year, and analysts project an EPS of $1.38 for the current fiscal year.
Dividend Announcement
Additionally, Insteel Industries declared a quarterly dividend, which was paid on September 26, 2023. Shareholders on record as of September 12, 2023 received a dividend of $0.03 per share, translating to an annualized dividend of $0.12 and a yield of 0.4%. The company’s dividend payout ratio is currently 5.71%.
Insteel Industries, Inc. specializes in manufacturing and marketing steel wire reinforcing products for concrete construction applications. Their offerings include prestressed concrete strand (PC strand) and welded wire reinforcement (WWR) products, which are vital for reinforcing structures such as bridges and buildings.
This latest investment and the company’s performance reflect a growing confidence in Insteel Industries as it navigates a robust market for industrial products. As institutional investment continues to rise, attention will remain on how these dynamics influence the company’s future growth and stability.
