IES Holdings, Inc. (NASDAQ:IESC) CEO Jeffrey Gendell has recently sold a significant portion of his stock in the company. According to the latest filings, the executive parted with shares worth over $8.9 million. The transactions occurred in a series of sales on June 4th and 5th, with prices ranging from $134.87 to $145.13 per share.
The sales were executed under a pre-established trading plan in accordance with Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This trading plan had been adopted earlier on March 6, 2024.
On June 4th, the CEO sold 17,279 shares at an average price of $134.87, with individual sales prices ranging from $134.40 to $135.39. Additionally, 8,342 shares were sold at an average of $135.67, with a price range from $135.40 to $136.19. Further sales on the same day included 3,400 shares at an average price of $137.80, 625 shares at $138.42, 1,653 shares at $140.12, 500 shares at $142.52, and 697 shares at an average price of $145.13.
The selling continued on June 5th, with 3,214 shares disposed of at an average price of $134.91, ranging from $134.58 to $135.32. Additionally, 3,229 shares were sold at an average price of $137.04, and a larger transaction of 23,811 shares was made at an average price of $137.81. The last reported sale on June 5th involved 2,972 shares at an average price of $138.53.
These transactions have been reported in compliance with SEC regulations, and the CEO has offered to provide full information regarding the number of shares sold at each separate price upon request.
Investors and followers of IES Holdings, Inc. often monitor insider sales as they may provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is also common for executives to sell shares for personal financial management reasons unrelated to their outlook on the company.
In other recent news, IES Holdings, Inc. has made significant strides with the acquisition of Greiner Industries, Inc. The recent acquisition, which includes Greiner's expansive 450,000 square feet facilities on a 60-acre campus, aims to bolster IES's Infrastructure Solutions segment. Greiner Industries, a structural steel fabrication and services company, reported revenue of approximately $58 million in 2023 and will maintain its brand name post-acquisition.
This strategic move by IES expands its geographic reach into the Mid-Atlantic market, adding Greiner's products and services to its portfolio. Greiner's strategic position is expected to support the Mid-Atlantic region, including the Virginia data center market. Rick Sine, Vice President of Operations at Greiner, will continue to lead the company following the acquisition. The founder of Greiner Industries, Frank Greiner, expressed enthusiasm for the transition and the alignment with IES's strategic resources and commitment to employees and customers. These developments are crucial in understanding the recent activities of IES Holdings, Inc.
InvestingPro Insights
IES Holdings, Inc. (NASDAQ:IESC) appears to be navigating a complex market environment, with the company's CEO, Jeffrey Gendell, recently offloading a substantial number of shares. While insider sales can often stir market speculation, it's important to consider the broader financial context in which these transactions occur. According to InvestingPro data, IES Holdings holds a market capitalization of approximately $2.66 billion, with a P/E ratio standing at 19.49. This valuation metric is slightly adjusted downwards to 19.29 when considering the last twelve months as of Q2 2024. Moreover, the company's PEG ratio during the same period signals potential undervaluation at 0.18, which may interest value investors looking for growth at a reasonable price.
Despite recent price volatility, with a one-week total return showing a 10.94% decline, the bigger picture reveals a robust 164.97% return over the past year. This impressive performance is further underscored by a six-month price total return of 93.36%. These figures suggest that while the CEO's sales are noteworthy, the company's stock has experienced significant appreciation over a longer horizon.
InvestingPro Tips highlight that IES Holdings has more liquid assets than short-term obligations and maintains a strong cash position relative to its debt. Additionally, the stock is trading at a high Price / Book multiple of 4.96, which may reflect investors' confidence in the company's asset value. For investors seeking a deeper analysis, there are an additional 13 InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/IESC. To enhance your investment strategy with these insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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