Cornerstone Investment Partners LLC has made a significant investment in Insteel Industries, Inc. (NASDAQ: IIIN), acquiring a new position valued at approximately $225,000 during the second quarter of 2023. The investment fund purchased 6,059 shares of the industrial products company’s stock, as reported by Holdings Channel.
This move comes as part of a broader trend among institutional investors, many of whom have adjusted their stakes in Insteel Industries. For instance, Russell Investments Group Ltd. increased its stake by 85.3% in the first quarter, now holding 72,268 shares valued at around $1.9 million. This increase followed the acquisition of an additional 33,264 shares during the quarter.
Another notable investor, Principal Financial Group Inc., raised its stake by 2.4%, resulting in ownership of 96,847 shares worth approximately $2.5 million after purchasing an additional 2,244 shares. Additionally, CWM LLC boosted its stake by an impressive 150.9%, now owning 4,744 shares valued at about $125,000, following the purchase of 2,853 shares.
Grace & White Inc. NY also entered the scene, investing approximately $391,000 to acquire a new position in Insteel Industries during the second quarter. Collectively, hedge funds and institutional investors now control 83.27% of the company’s stock.
Insider Trading Activity
In related news, senior vice president James R. York sold 3,000 shares of Insteel Industries on August 22, 2023, at an average price of $38.50, totaling $115,500. Following this sale, York’s remaining shares amounted to 9,443 shares, valued at approximately $363,555.50. This transaction represented a 24.11% decrease in his ownership stake. The sale was disclosed in a document filed with the U.S. Securities and Exchange Commission.
Currently, insiders hold 6.00% of Insteel Industries’ stock, reflecting the company’s governance structure and potential for future growth.
Financial Performance and Dividend Announcement
Insteel Industries reported its latest quarterly earnings on October 16, 2023. For this quarter, the company posted earnings per share of $0.74, which fell short of analysts’ consensus estimates of $0.79 by $0.05. The company achieved a net margin of 3.58% and a return on equity of 5.91%. In comparison, the firm reported earnings of $0.24 per share during the same quarter last year. Revenue for the quarter increased by 32.0% year-over-year.
Analysts forecast that Insteel Industries, Inc. will report earnings per share of $1.38 for the current fiscal year, showing optimism about the company’s performance in the upcoming quarters.
In addition to its financial results, the company declared a quarterly dividend of $0.03 per share, which was paid to shareholders on September 26, 2023. Shareholders of record as of September 12 received this dividend, translating to an annualized dividend of $0.12 and a yield of 0.4%. The company’s current dividend payout ratio stands at 5.71%.
About Insteel Industries: Insteel Industries, Inc., along with its subsidiaries, specializes in the manufacturing and marketing of steel wire reinforcing products for concrete construction applications. The company offers products such as prestressed concrete strand (PC strand) and welded wire reinforcement (WWR), crucial for reinforcing structures like bridges and buildings.
As institutional investment in Insteel Industries continues to grow, the company remains positioned for potential expansion in the competitive industrial products sector.
