Shenandoah Telecommunications Co. (NASDAQ:SHEN) President and CEO Christopher E. French has purchased additional shares of the company's stock, according to a recent filing with the Securities and Exchange Commission. The executive acquired 5,000 shares at a price of $15.79 per share, amounting to a total investment of $78,950.
This transaction adds to French's already significant holdings in the telecommunications firm. The purchase was made directly and is part of a series of ownership stakes held by French, including shares owned by his spouse, son, and various family trusts. Notably, the shares acquired recently are indirectly owned by French's spouse.
The latest acquisition reflects French's continued confidence in Shenandoah Telecommunications, a Virginia-based company specializing in telephone communications. Following this transaction, the total number of shares directly and indirectly owned by French and his family in Shenandoah Telecommunications has increased, although he disclaims beneficial ownership of certain shares held in trust for relatives.
Investors often monitor insider buying as it can signal executives' beliefs in the company's future performance. With this recent purchase, stakeholders may find reassurance in French's optimistic stake in Shenandoah Telecommunications' prospects.
In other recent news, Shenandoah Telecommunications (Shentel) has reported a positive Q1 2024, marked by significant expansion and financial growth. The company sold its towers for $310 million and acquired Horizon Telecom for $385 million, a move expected to generate substantial revenue and adjusted EBITDA in the latter part of the year. Shentel also announced the expansion of its Glo Fiber network and the appointment of a new leader for commercial sales.
Financially, Shentel showed a 3.1% increase in revenue to $69.3 million, while adjusted EBITDA reached $19.3 million. The company's liquidity position remains strong at $484 million, with net debt standing at $190 million. Shentel has also made strides in customer growth, adding over 5,000 new Glo Fiber customers and constructing 26,000 new Glo Fiber passings in the quarter.
These recent developments underscore Shentel's strategic growth and resilience, despite facing some challenges in broadband data churn and subscriber numbers. The company's financials and expansion plans indicate a robust ability to navigate future investments and growth opportunities.
InvestingPro Insights
As Shenandoah Telecommunications Co. (NASDAQ:SHEN) witnesses insider buying from its CEO, investors are paying close attention to the company's performance metrics and market valuation. Insights from InvestingPro reveal a mixed financial landscape for SHEN that potential investors should consider.
One of the key metrics indicating SHEN's market position is its Price to Earnings (P/E) Ratio. The company's adjusted P/E ratio for the last twelve months as of Q1 2024 stands at an elevated 274.46, suggesting that the stock is trading at a high earnings multiple. This could imply that investors are expecting high growth in the future or that the stock is currently overvalued.
Despite the high P/E ratio, SHEN has demonstrated a solid gross profit margin of 63.15% over the last twelve months as of Q1 2024. This indicates that the company has been effective in controlling the cost of goods sold and has a strong pricing strategy for its services.
However, the company's stock performance has recently taken a hit, with a 1-week price total return of -10.78%. This suggests that investors may have concerns about the company's near-term prospects, despite the CEO's confidence signaled by his recent stock purchase.
For those considering an investment in SHEN, there are additional InvestingPro Tips available. Among these, two particularly relevant tips include the fact that SHEN holds more cash than debt on its balance sheet, providing financial stability, and the company has maintained dividend payments for 29 consecutive years, demonstrating a commitment to returning value to shareholders.
Investors seeking more in-depth analysis and additional tips can unlock the full potential of InvestingPro by visiting the SHEN page on the platform. There are 11 additional tips available, offering a comprehensive view of the company's financial health and market performance. For those ready to take the plunge, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with valuable insights.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.