Gaurav Chhibbar, Chief Operating Officer of Friedman Industries Inc (NYSE: FRD), reported a purchase of 1,000 shares of the company’s common stock at $18.35 per share in a Form 4 filed with the Securities and Exchange Commission. Completed on February 19, 2026, the trade totaled $18,350 and, following the transaction, leaves Chhibbar with direct ownership of 51,000 shares.
The purchase coincided with market trading that placed the stock at $18.45, a price point close to Chhibbar’s acquisition level. Separately, InvestingPro analysis cited in company-related materials indicates the stock appears overvalued relative to its Fair Value, a valuation view that contrasts with the timing of the insider buy.
Friedman Industries continues to pay dividends, maintaining a long record of distributions. InvestingPro Tips note the company has paid dividends for 54 consecutive years and currently yields 0.89%. In line with that record, the company declared a quarterly cash dividend of $0.04 per share on its common stock, payable on February 13, 2026, to shareholders of record as of January 16, 2026.
On the corporate finance front, Friedman Industries amended its credit facility to raise borrowing capacity from $125 million to $140 million. The amendment was executed with Century Metals & Supplies, LLC and names JPMorgan Chase Bank, N.A. as administrative agent. Changes included revisions to the definition of "Eligible Accounts" and adjustments to certain threshold amounts. The company indicated that fuller details of the credit agreement modifications will be disclosed in its upcoming Quarterly Report on Form 10-Q for the quarter ended December 31, 2025.
These developments - the insider purchase, the declared dividend, and the credit facility amendment - represent recent corporate actions disclosed by Friedman Industries. Public filings cited in the Form 4 and the company’s forthcoming 10-Q will contain the official documentation and the precise terms referenced in the company statements.
Summary
Friedman Industries COO Gaurav Chhibbar purchased 1,000 shares for $18,350 on February 19, 2026, increasing his direct stake to 51,000 shares. The company declared a $0.04 quarterly dividend payable February 13, 2026, and amended its credit facility to expand borrowing capacity to $140 million; additional details will appear in the 10-Q for the quarter ended December 31, 2025.
Key points
- Insider purchase: COO Gaurav Chhibbar bought 1,000 shares at $18.35 per share, totaling $18,350.
- Dividend continuity: Friedman Industries has paid dividends for 54 consecutive years and set a $0.04 per share quarterly cash dividend with a 0.89% yield noted by InvestingPro Tips.
- Credit facility amendment: Borrowing capacity increased from $125 million to $140 million; modifications include changes to the definition of "Eligible Accounts" and threshold amounts, with full disclosures to appear in the quarter-end 10-Q.
Risks / Uncertainties
- Valuation perspective: InvestingPro analysis indicates the stock appears overvalued relative to its Fair Value, which may affect investor assessment of the recent insider buy - relevant to equity market participants and investors tracking valuation signals.
- Pending disclosures: Specifics of the credit facility amendment will be detailed in the company's forthcoming Quarterly Report on Form 10-Q for the quarter ending December 31, 2025; until published, full terms and implications remain subject to that disclosure - relevant to creditors and corporate finance observers.
- Dividend timing: The dividend is payable on February 13, 2026, to shareholders of record as of January 16, 2026; eligibility and record-keeping dates can affect investor decisions around share ownership timing - relevant to income-focused market participants.