In a recent move, Forager Fund, L.P., a significant shareholder in Willdan Group , Inc. (NASDAQ:WLDN), has sold a substantial number of shares in the company. The transaction, which took place on July 9, 2024, involved the sale of 188,230 shares at a weighted average price of $29.9345, resulting in a total deal value of approximately $5.63 million.
The shares were sold in multiple transactions with prices ranging from $29.90 to $30.06. The exact number of shares sold at each price point within this range is available upon request, as the reporting parties have agreed to provide detailed information if required by the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
Following the sale, Forager Fund, L.P. remains a major investor in Willdan Group, with a reported 1,255,765 shares still under its direct ownership. Additionally, individual holdings by Edward Kissel and Robert MacArthur, principals of Forager Capital Management, LLC—the general partner of Forager Fund, L.P.—were reported. Kissel directly holds 11,402 shares, while MacArthur directly owns 271 shares. Furthermore, an indirect holding of 1,775 shares is attributed to Kissel's spouse.
Both Kissel and MacArthur have shared authority over voting and disposal of the shares owned by Forager Fund, L.P. However, they have disclaimed beneficial ownership of these shares, except to the extent of their pecuniary interest.
This divestment by Forager Fund, L.P. represents a notable change in its investment in Willdan Group, a company that specializes in engineering services. Willdan Group, Inc. is incorporated in Delaware and is known for providing technical and consulting services across various sectors.
Investors and market watchers will likely follow to see how this sale impacts Willdan Group's stock performance and Forager Fund, L.P.'s investment strategy moving forward.
In other recent news, Willdan Group Inc. reported significant growth in Q1 2024, with revenue increasing by 19% to $123 million. Adjusted EBITDA also saw a rise of 12% to $11 million, and a substantial 56% increase in cash flow from operations to $27 million was noted. The company's government and utility segments performed strongly, and a surge in demand was seen in the data center sector. These developments are recent and reflect the company's robust growth trajectory.
Furthermore, Willdan Group is actively exploring strategic acquisitions and is expanding its software and service offerings. The company is optimistic about meeting its full-year financial targets, which include a net revenue of $270 million to $280 million and an adjusted EBITDA of $48 million to $50 million. The company's confidence in achieving its 2024 financial targets is bolstered by strong organic growth in the first quarter and successful efforts to improve cash flow. However, it should be noted that the company did not disclose revenue numbers for two software sales made during the quarter.
InvestingPro Insights
In light of the recent divestment by Forager Fund, L.P., investors in Willdan Group, Inc. (NASDAQ:WLDN) might consider several key metrics and insights from InvestingPro to better understand the company's financial health and market position.
InvestingPro Data shows that Willdan Group is currently trading with a market capitalization of approximately $442.56 million and a P/E ratio of 33.33, reflecting a premium compared to industry peers. The company's P/E ratio for the last twelve months as of Q1 2024 stands at 34.12, which further underlines its high earnings multiple as indicated by an InvestingPro Tip. Additionally, Willdan Group has experienced a significant 20.48% revenue growth over the last twelve months as of Q1 2024, showcasing its ability to expand its financial top-line.
An InvestingPro Tip highlights that Willdan Group's net income is expected to grow this year, which could be a positive signal for investors looking for growth potential. Moreover, the company has been profitable over the last twelve months and analysts predict continued profitability for the current year. This is further supported by a robust 66.32% price total return over the last six months, indicating strong market confidence in the company's performance.
For investors interested in a deeper analysis of Willdan Group, Inc., there are an additional 8 InvestingPro Tips available at https://www.investing.com/pro/WLDN. These tips provide further insights into the company's financials, including aspects such as debt levels and liquidity.
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