In a recent transaction, Theodore R. Moore, Senior Vice President, General Counsel, and Secretary of Nine Energy Service, Inc. (NYSE:NINE), sold 9,594 shares of the company's common stock. The sale took place on August 12, 2024, at an average price of $1.358 per share, resulting in a total transaction amount exceeding $13,000.
This sale was executed to meet tax withholding obligations related to the vesting of a time-based restricted stock award granted to Moore on August 9, 2021. Following this transaction, Moore's direct ownership in the company stands at 180,936 shares.
It's also noted that there has been a transfer of 189 shares of common stock by Moore to his ex-spouse since his last ownership report. This detail was included in the footnotes of the filing, highlighting the importance of such notes in understanding the context of reported transactions.
Investors and market watchers often scrutinize Form 4 filings to gauge insider sentiment and potential future stock movements. The sale by Moore represents a notable change in his investment position and could be of interest to those following the oil and gas field services company's stock.
In other recent news, Nine Energy Service reported its second quarter 2024 earnings, with revenue hitting the projected range of $130 million to $140 million at $132.4 million. Despite industry challenges such as a decrease in rig counts and lower cementing business pricing, which resulted in a diluted EPS of -$0.40, the company managed to achieve an adjusted EBITDA of $9.7 million. Looking ahead, Nine Energy Service projects its Q3 revenue to fall between $127 million and $137 million.
The company's U.S. refrac business performed well in the recent quarter, and it maintains a positive outlook on the gas market in the medium and long term. International sales, however, are anticipated to be inconsistent. Nine Energy Service is also preparing for a potential increase in exploration and production activity in the latter half of 2025.
The company's efficient equipment maintenance has led to reduced capital expenditure needs. Despite the volatility of the market, Nine Energy Service's leadership remains confident in their team's ability to navigate the industry successfully. These are the latest developments for Nine Energy Service.
InvestingPro Insights
Amid the recent insider transaction at Nine Energy Service, Inc. (NYSE:NINE), where Senior Vice President, General Counsel, and Secretary Theodore R. Moore sold a significant number of shares, investors may be curious about the company's financial health and stock performance. According to InvestingPro data, Nine Energy Service currently has a market capitalization of $55.37 million, which is reflective of its size in the industry. Moreover, the company's stock price has experienced considerable volatility, with a 1-week price total return of -16.77% and a 1-year price total return of -71.06%, indicating a significant downward trend over the past year.
Another key metric, the company's gross profit margin for the last twelve months as of Q2 2024, stands at 16.88%. This figure, while providing insight into the company's profitability from its core operations, is noteworthy considering the InvestingPro Tip that Nine Energy Service suffers from weak gross profit margins. Investors might interpret this as a signal to scrutinize the company's operational efficiency and cost management strategies.
Furthermore, the company's stock is currently trading near its 52-week low, with a price percentage of the high at only 27.24%. This aligns with the InvestingPro Tip suggesting that the stock is in oversold territory, which might interest investors looking for potential undervalued opportunities or those seeking to assess the stock's technical position.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which can provide a more comprehensive understanding of Nine Energy Service's financial standing and stock behavior. Currently, InvestingPro offers 13 additional tips that can be accessed by visiting the company's page on the InvestingPro platform.
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