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Mister Car Wash executive sells over $19k in company stock

Published 06/06/2024, 05:21 PM
MCW
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Mister Car Wash , Inc. (NYSE:MCW) has reported a recent transaction involving the company's Chief People Officer, Mary Lyn Porter. According to the latest SEC filing, Porter sold a total of 2,798 shares of Mister Car Wash's common stock on June 4, 2024, for an average price of $6.91 per share. The total value of the stock sold amounted to approximately $19,334.

The sale was executed in multiple transactions at prices ranging from $6.91 to $6.92. These transactions were not discretionary sales by Porter but were instead carried out to cover tax withholding obligations related to the vesting of Restricted Stock Units. The SEC filing clarified that the shares sold were specifically to satisfy tax requirements through a "sell-to-cover" transaction.

Following this sale, Mary Lyn Porter's ownership in Mister Car Wash stands at 9,439 shares of common stock. The company, based in Tucson, Arizona, is known for providing automotive repair, services, and parking, and operates under the standard industrial classification code for services in the automotive sector.

Investors and shareholders can request detailed information about the exact number of shares sold at each price point within the reported range if needed. The transactions were acknowledged with a signature by Markus Hartmann, acting as Attorney-in-Fact for Mary L. Porter, on June 6, 2024.

In other recent news, Mister Car Wash Inc. reported steady growth in its financial performance for the first quarter ending March 31, 2024. The company recorded a 6% increase in sales, reaching $239 million, and a 6% rise in adjusted EBITDA to $75 million, demonstrating resilience amid a challenging retail environment. This growth is attributed to the company's strategic focus on membership upgrades and operational efficiencies.

Simultaneously, JPMorgan has upgraded Mister Car Wash's stock rating from Neutral to Overweight and set a new price target of $8.50. The upgrade aligns with JPMorgan's view of auto services companies as important performance benchmarks. The bank's analysis predicts mid-single-digit growth for Mister Car Wash in top-line revenue and EBITDA.

In addition to these developments, Mister Car Wash continues to expand its footprint, opening six new stores and adding 35,000 new members to its Unlimited Wash Club in the first quarter. The company also completed a sell-leaseback transaction for $5 million, demonstrating sound financial management. These are part of the recent developments that signal a positive outlook for Mister Car Wash's financial performance in the coming year.

InvestingPro Insights

Mister Car Wash, Inc. (NYSE:MCW) has seen its share of market fluctuations, reflective of the broader trends in the automotive service sector. As of the latest data, the company's market capitalization stands at approximately $2.18 billion USD, showcasing its significant presence in the industry.

InvestingPro Tips highlight that Mister Car Wash operates with a considerable debt burden and its stock price movements have been notably volatile. This is particularly relevant for investors considering the recent insider transactions and may indicate a need for close monitoring of the company's financial health and stock performance. Moreover, the company is currently trading at a high revenue valuation multiple, with a P/E ratio (adjusted for the last twelve months as of Q1 2024) of 28.59. This suggests that the stock may be priced on the higher side relative to earnings, which is an important consideration for value investors.

On a positive note, analysts anticipate that Mister Car Wash will be profitable this year, as the company has already been profitable over the last twelve months. This is supported by a solid gross profit margin of 31.12% and an operating income margin of 18.5% for the same period. However, it's worth noting that Mister Carwash does not pay a dividend, which may influence the investment decisions of income-focused shareholders.

Investors interested in a deeper dive into Mister Car Wash's financials and stock performance can access additional InvestingPro Tips by visiting https://www.investing.com/pro/MCW. There are currently 6 additional tips available, which could provide further insights into the company's operations and future outlook. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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