A recent filing with the Securities and Exchange Commission has revealed that Spencer Doran Hole, the Executive Vice President and Chief Financial Officer of Ameresco, Inc. (NYSE:AMRC), has sold a total of $132,650 worth of company stock. The transactions, which took place on August 12, 2024, involved the sale of 5,000 shares at prices ranging from $26.53 to $26.57.
This sale comes alongside a transaction where Hole exercised options to acquire 5,000 shares of Ameresco's Class A Common Stock at a price of $14.24 per share, amounting to a total transaction value of $71,200. Following these transactions, Hole's direct ownership in the company has been adjusted to 1,878 shares of Class A Common Stock.
The sales were executed in multiple transactions at varying prices within the stated range, as noted in the filing's footnotes. The specific breakdown of shares sold at each price point within the range can be provided upon request by the company, any security holder, or the SEC staff.
The company's stock options exercised by Hole are part of a vesting schedule where 20% of the shares subject to the option vested on each anniversary of the grant date, starting from July 29, 2019, over a five-year period. The options are set to expire on July 28, 2029.
Investors and market watchers often look to insider buying and selling as an indicator of company health and executive confidence. Transactions by high-level executives like the CFO are closely monitored for insights into the strategic direction and financial well-being of a company.
Ameresco, Inc., headquartered in Framingham, Massachusetts, is a leading clean technology integrator specializing in energy efficiency and renewable energy solutions. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol AMRC.
In other recent news, Ameresco, a leading clean technology integrator, has embarked on a significant solar energy project in partnership with the City of Somersworth. The project, a solar photovoltaic installation, is projected to produce over 67 million kWh over two decades, offsetting an estimated 2,461 metric tons of CO2 emissions annually. In other developments, Ameresco has adjusted its fiscal year 2024 EBITDA guidance by 2% due to cost overruns from Southern California Edison projects, according to Piper Sandler.
Ameresco has also secured a $100 million second lien debt financing from Nuveen Energy Infrastructure Credit, providing a solid financial base for the firm's growth ambitions. Additionally, the company initiated a $33 million project to enhance energy efficiency at the U.S. National Archives and Records Administration facilities, expected to yield about $2 million in annual savings.
On the earnings front, Ameresco reported strong financial results in its second quarter, with total revenues surging by 34% to $438 million and a record backlog of $4.4 billion. The company also brought 155 megawatts of Energy Assets into operation. Looking forward, Ameresco has raised its 2024 revenue and adjusted EBITDA growth forecasts to 27% and 35%, respectively, at the midpoints. These are among the recent developments for Ameresco.
InvestingPro Insights
As Ameresco's Executive Vice President and Chief Financial Officer Spencer Doran Hole engages in recent stock transactions, investors may benefit from a closer look at the company's financial health and market performance through key metrics and insights from InvestingPro.
InvestingPro Data indicates Ameresco (NYSE:AMRC) currently holds a market capitalization of $1.41 billion. The company's Price-to-Earnings (P/E) ratio stands at 24.58, with a slight adjustment in the last twelve months as of Q2 2024 to 23.34, reflecting the company's earnings relative to its share price. Despite the recent insider selling, analysts have revised their earnings upwards for the upcoming period, which could signal confidence in Ameresco's future profitability.
Revenue growth is also notable, with a 10.34% increase over the last twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 33.91% in Q2 2024. Such figures suggest a robust sales trajectory that analysts expect to continue, as they anticipate sales growth in the current year. This aligns with the InvestingPro Tip highlighting that Ameresco is predicted to be profitable this year, a sentiment backed by the company's profitability over the last twelve months.
However, investors should be aware of certain challenges. Ameresco operates with a significant debt burden and has been quickly burning through cash. Additionally, the stock has experienced considerable volatility, with a 1-month price total return showing a decline of -14.56% as of the data reference date. The stock has also fared poorly over the last month, which may raise concerns for potential investors.
For those interested in a deeper analysis, there are 13 additional InvestingPro Tips available for Ameresco, which can provide further insights into the company's valuation, stock performance, and financial health. These can be accessed through the dedicated InvestingPro page for Ameresco at https://www.investing.com/pro/AMRC.
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