Friedman Insiders Were Cluster Buying Before Near 30% Stock Rise

Founded in 1965 and headquartered in Longview, Texas, Friedman Industries Inc (FRD:US) works to provide high-quality steel products with quick delivery. Working in two divisions - Flat Roll and Tubular - the company serves steel distributors and manufacturers of various steel products.

Publicly trading on the NYSE under the symbol 'FRD', Friedman Industries has a present market cap of almost $109.42 million.

First Cluster Buying in 2024

From June 13 to July 10, four insiders at Friedman Industries raised their stakes in FRD stock:

• Michael J. Taylor - serving as the company’s Chairman/President/CEO - bought FRD shares in four transactions from June 13 - 17 and July 02 respectively. In total, he purchased 15,000 shares, valued at $237,020.

• Joel Spira, Director at Friedman, bought 2,000 shares valued at $28,540. 

• Max Alan Reichenthal, also a Director, bought 2,000 shares worth $29,999.

• Joe L. Williams, also a member of the Board, bought 3,000 shares valued at $43,020.

In total, the four insiders bought $338,580 worth of shares in total.

Interestingly, FDR shares have seen a price hike of 28.35% since July 10, when Mr. Williams - the last insider - traded.

Fiscal Q4 2024 Results & Cash Dividend

For the quarter ending March 31, 2024, Friedman Industries reported net earnings of $5.0 million and sales of $132.2 million, with a 13% increase in sales volume over the preceding third quarter and a 9% increase over the prior year's fourth quarter. For the fiscal year, the company achieved net earnings of $17.3 million, making it the second most profitable year in its history.

Later, on June 26, 2024, the company declared a cash dividend of $0.04 per share. To be paid on August 16, 2024, to shareholders of record as of July 26, 2024. This marks the company's 210th consecutive quarterly dividend since going public in 1972. 

According to Atradius credit ratings, the US metals and steel producers benefit from a competitive edge compared to their counterparts in Europe and Japan because of lower energy costs. Adding Friedman’s bullish news announcements to this, it seems FDR stock is poised for a longer bull run.