Insiders at Willdan Group , Inc. (NASDAQ:WLDN), a provider of professional technical and consulting services, have sold a significant amount of stock, according to recent filings with the Securities and Exchange Commission. The transactions, which took place between June 6 and June 10, 2024, involved the sale of shares at prices ranging from $31.0147 to $32.0297, amounting to a total of over $1 million.
The sales were executed in multiple transactions at varying prices. On June 6, shares were sold at a weighted average price of $32.0297, with prices ranging from $31.71 to $32.58. Further sales occurred on June 7 at a weighted average price of $31.4688, with a price range of $31.31 to $31.61. Finally, on June 10, shares were sold at a weighted average price of $31.0147, with individual transactions priced between $30.86 and $31.24.
The filings indicate that the shares sold were directly held by Forager Fund, L.P., and the transactions were reported by principals of Forager Capital Management, LLC, the general partner of the Fund. Edward Kissel and Robert MacArthur, both principals of the firm, have shared authority to vote and dispose of these shares. Both Kissel and MacArthur have disclaimed beneficial ownership of the shares sold, except to the extent of their pecuniary interest.
These recent sales by insiders at Willdan Group, Inc. represent a notable change in their holdings of the company's stock. Investors typically monitor insider transactions as they may provide insights into the executives' perspectives on the company's current valuation and future prospects.
In other recent news, Willdan Group Inc. has reported a robust growth in its Q1 2024 earnings. The company witnessed a 19% increase in revenue, reaching $123 million, while adjusted EBITDA rose by 12% to $11 million. There was also a notable 56% surge in cash flow from operations, which hit $27 million. The government and utility segments demonstrated strong performance, and a rise in demand was observed in the data center sector, particularly due to increased electricity load from artificial intelligence processing. Furthermore, Willdan is actively seeking strategic acquisitions to enhance its capabilities and is confident about meeting its full-year financial targets. However, the company did not disclose revenue numbers for two software sales made during the quarter. Analysts from several firms expect the company's revenue to increase throughout the year, ending with cash from operations close to target EBITDA numbers.
InvestingPro Insights
As Willdan Group, Inc. (NASDAQ:WLDN) experiences notable insider stock sales, a deeper dive into the company's performance metrics offers investors additional context. According to InvestingPro, Willdan Group is anticipated to have net income growth this year, which could signal confidence in the company's future profitability. This is further underscored by analysts' predictions that the company will be profitable this year, a sentiment that may have been factored into the insider trading decisions.
Analyzing the company's financial health, Willdan Group's liquid assets are reported to exceed its short-term obligations, indicating a solid liquidity position that may reassure investors of the company's ability to meet its immediate financial commitments. Additionally, the company operates with a moderate level of debt, suggesting a balanced approach to leveraging and financial stability.
From a valuation standpoint, Willdan Group is trading at a high earnings multiple with a P/E ratio of 32.25, reflecting a premium that investors are willing to pay for its earnings potential. This is slightly higher than the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at 32.76. Moreover, the company's strong performance is evident in its high return over the last three months, with a price total return of 27.27%, and an impressive six-month price total return of 49.93%.
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