HOUSTON, TX – In a recent transaction filed with the Securities and Exchange Commission, Theodore R. Moore, the Senior Vice President, General Counsel, and Secretary of Nine Energy Service, Inc. (NYSE:), sold 11,822 shares of the company’s common stock. The sale was executed at an average price of $1.54 per share, resulting in a total transaction value of $18,205.
The transaction occurred on August 8, 2024, and was reported to the SEC the following day. Following the sale, Moore’s direct holdings in Nine Energy Service, Inc. stand at 190,719 shares of common stock. The details of the sale highlight a straightforward disposal of shares by the executive without any indication of equity swap involvement.
This financial move comes as part of the routine disclosures that executives of publicly traded companies are required to make regarding their stock transactions. These disclosures provide transparency and ensure that all market participants have access to the same information.
Investors and market watchers often monitor such insider transactions to gain insights into the company’s performance and the confidence level of its senior executives. However, it’s essential to note that such transactions do not necessarily indicate a forecast of the company’s future performance and can be motivated by a variety of personal financial considerations.
Nine Energy Service, Inc., headquartered in Houston, Texas, operates in the oil and gas field services industry and is recognized for its specialized services including well completions and wireline services. The company has not provided any comments regarding this latest stock transaction by one of its top executives.
In other recent news, Nine Energy Service has reported its second quarter 2024 earnings, achieving a revenue of $132.4 million, which aligns with its earlier projections. The company also reported an adjusted EBITDA of $9.7 million for the quarter. However, the company noted a decrease in rig counts and lower pricing within its cementing business, which resulted in a diluted EPS of -$0.40.
These recent developments also include Nine Energy Service’s projection of a steady third quarter, with revenue expected to land between $127 million to $137 million. Despite facing industry challenges, the company maintains a positive medium and long-term outlook on the gas market, which currently constitutes 30-35% of its total revenue.
In addition, Nine Energy Service is prepared for a potential increase in exploration and production activity in the latter half of 2025. The company is also considering expanding services to include consulting in the refrac market, which had a strong quarter. Furthermore, the company has seen a reduction in capital expenditure needs due to more efficient equipment maintenance.
InvestingPro Insights
In light of the recent insider stock transaction at Nine Energy Service, Inc., it is valuable to consider the company’s financial health and market performance. According to real-time data from InvestingPro, Nine Energy Service is operating with a significant debt burden and has not been profitable over the last twelve months as of Q2 2024. This is reflected in their negative price-to-earnings (P/E) ratio of -1.27 and a decline in revenue growth by -15.13% over the same period. The company’s stock has also experienced a substantial decrease, with a one-week total price return showing a -17.16% change.
InvestingPro Tips suggest that Nine Energy Service’s stock price movements are quite volatile and that the stock is trading near its 52-week low. This could be of interest to investors looking for potential buying opportunities or seeking to assess the risk associated with the stock. Additionally, while the company has a high shareholder yield, analysts do not anticipate Nine Energy Service will be profitable this year.
For investors considering Nine Energy Service as part of their portfolio, it’s crucial to weigh these factors alongside the insider trading activity. With the stock price having fallen significantly over the last year (-71.72% one-year total price return), the recent sale by the Senior Vice President may draw attention to the company’s current valuation and its future prospects. For more insights and additional InvestingPro Tips related to Nine Energy Service, you can visit https://www.investing.com/pro/NINE, where 11 additional tips are available to help inform your investment decisions.
InvestingPro Data highlights:
- Market Cap: $57.63M USD
- Revenue (last twelve months as of Q2 2024): $559.21M USD
- Price, Previous Close: $1.41 USD
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