Northwest Natural Holding Co Director Sells 7,500 Shares at $41.96

Northwest Natural Holding Company (NWN) has announced that Director Anderson David Hugo has sold 7,500 shares at a price of $41.96 per share on July 21, 2023.

Northwest Natural Holding Company (NWN) has recently experienced a notable transaction involving one of its directors. Director Anderson David Hugo sold 7,500 shares of the company's stock on July 21, 2023, at a price of $41.96 per share [2]. This sale was part of a Rule 10b5-1 trading plan established by Mr. Hugo to periodically sell a portion of his NWN holdings as part of his retirement strategy [2].

The sale of 7,500 shares represents a significant move by Mr. Hugo, who previously held a substantial number of shares in the company. The transaction occurred after Mr. Hugo retired from his position as CEO of NWN Holdings and NW Natural, effective April 1, 2025 [2]. The sale price of $41.96 per share is in line with the current market price of NWN's stock, indicating no immediate impact on the stock's valuation due to this transaction.

Despite the transaction, NWN continues to operate with a dividend payment of $0.49 per share, set to be paid on August 15, 2023. This dividend represents a 4.7% yield of the current stock price, which is in line with the industry average [1]. However, it is important to note that NWN's dividend payout ratio is expected to increase to 64% in the next fiscal year, which could pose a risk to the sustainability of its dividend payments [1].

The company's financial performance has been a subject of concern, with earnings per share (EPS) effectively flat over the past five years. This has led to a muted growth in dividend payments, which may limit the company's ability to increase dividends in the future [1]. Additionally, NWN has faced negative EPS revisions and decelerating momentum compared to other utilities stocks, leading to a "Sell" rating from a quantitative rating system [3].

In conclusion, while the sale of shares by Director Anderson David Hugo is a notable event, it is essential to consider the broader financial context of NWN. Investors should be mindful of the company's dividend sustainability and overall financial performance before making investment decisions.

References:
[1] https://finance.yahoo.com/news/northwest-natural-holding-nyse-nwn-104838139.html
[2] https://www.streetinsider.com/SEC+Filings/Form+4+Northwest+Natural+Holdin+For%3A+Jul+21+Filed+by%3A+ANDERSON+DAVID+HUGO/25082872.html
[3] https://seekingalpha.com/warnings/4469757-warning-nwn-is-at-high-risk-of-performing-badly