In a recent transaction, David Crombie, the Executive Vice President and Chief Operating Officer of Nine Energy Service, Inc. (NYSE:NINE), sold 7,063 shares of the company's common stock. The sale took place on May 9, 2024, and the shares were sold at a price of $1.974 each, amounting to a total value of $13,942.
The transaction was reported in a Form 4 filing with the Securities and Exchange Commission. According to the filing, the sale was conducted to satisfy tax withholding obligations related to the vesting of a time-based restricted stock award that was granted to Crombie on May 9, 2023.
Following the sale, Crombie still holds a significant number of Nine Energy Service shares, with a total of 325,490 shares remaining in his possession. The transaction was executed in a non-discretionary manner, as stated in the footnotes of the filing, indicating that the sale was planned and not based on any discretionary decision by Crombie.
Investors often monitor insider transactions like these for insights into executive sentiment about their company's stock. While sales to meet tax obligations are common and not necessarily indicative of a lack of confidence in the company, they do contribute to the overall picture of insider activity that investors may consider.
Nine Energy Service, Inc. specializes in oil and gas field services and is headquartered in Houston, Texas. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol NINE.
InvestingPro Insights
Nine Energy Service, Inc. (NYSE:NINE), a company specializing in oil and gas field services, has seen significant movement in its stock price. As of the latest available data, Nine Energy Service has been trading near its 52-week low, with a previous close at $1.95. This price reflects a notable decline, with the stock experiencing a one-week total return of -14.86% and a one-month total return of -32.98%. These figures underscore the recent challenges faced by the company in the market.
From a financial perspective, Nine Energy Service's market capitalization stands at $66.76 million, with a negative price-to-earnings (P/E) ratio of -1.95, suggesting that the company is not currently profitable. This aligns with one of the InvestingPro Tips indicating that analysts do not expect the company to be profitable this year. The gross profit margin for the last twelve months as of Q1 2024 is reported at 18.46%, which, while positive, is considered weak according to another InvestingPro Tip.
For investors seeking a deeper analysis of Nine Energy Service's financial health, additional InvestingPro Tips reveal that the company has not been profitable over the last twelve months and does not pay a dividend to shareholders. However, it is worth noting that Nine Energy Service's liquid assets exceed its short-term obligations, providing some financial stability.
Investors interested in gaining further insights into Nine Energy Service's stock performance and financial metrics can access a wealth of additional tips on InvestingPro. The platform currently lists several more tips to guide investment decisions. To explore these insights and benefit from the full range of features, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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