Transaction summary
Friedman Industries Inc (NASDAQ: FRD) President and CEO Taylor Mike J. reported the purchase of 600 shares of the company's common stock on February 18, 2026, via a Form 4 filing with the Securities and Exchange Commission. The shares were acquired at $18.75 each, bringing the total transaction value to $11,250. The purchase price was a small premium to the then-current trading price of $18.15.
After the transaction, Taylor's direct ownership stake in Friedman Industries stands at 222,166 shares.
Corporate actions and liquidity
In disclosure filings, Friedman Industries also confirmed a quarterly cash dividend of $0.04 per share on its common stock. The dividend is slated for distribution on February 13, 2026, and shareholders of record as of January 16, 2026 will be eligible.
The company additionally amended its credit facility, increasing available borrowing capacity from $125 million to $140 million. The amendment was executed in collaboration with Century Metals & Supplies, LLC, with JPMorgan Chase Bank, N.A. serving as administrative agent. The changes include revisions to threshold amounts and an updated definition for "Eligible Accounts." Friedman Industries said the specific revisions will be outlined in its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025.
Valuation and dividend history
Documentation accompanying the filings cites InvestingPro analysis, which indicates the company remains on a list of most undervalued stocks. The same data source is referenced as tracking more than 1,400 additional financial metrics and expert insights for FRD. InvestingPro data in the filings also notes that Friedman Industries has maintained dividend payments for 54 consecutive years.
Key points
- CEO Taylor purchased 600 shares on February 18, 2026, at $18.75 per share, totaling $11,250, and now directly owns 222,166 shares.
- Friedman Industries declared a $0.04 quarterly cash dividend payable February 13, 2026, with a record date of January 16, 2026.
- The company increased its credit facility from $125 million to $140 million; amendments and revisions will be detailed in the Form 10-Q for the quarter ended December 31, 2025.
Risks and uncertainties
- The amended credit facility includes changes to threshold amounts and the definition of "Eligible Accounts"; full implications will depend on the details disclosed in the forthcoming Form 10-Q.
- The dividend payment is subject to the specified record and distribution dates; shareholders must meet the January 16, 2026 record date to qualify.
- Market pricing at the time of the CEO's purchase differed from the transaction price - the shares were bought at a slight premium to the quoted price of $18.15, while InvestingPro analysis cited in filings labels the stock as undervalued. Valuation assessments may vary by source.
Conclusion
The filing documents outline a modest insider purchase, a routine quarterly dividend, and a negotiated expansion of borrowing capacity. Additional specificity on the credit amendments will be available when Friedman Industries files its Quarterly Report on Form 10-Q for the period ending December 31, 2025.