Brian P. Weber, Executive Vice President at Clean Harbors Inc . (NYSE:CLH), recently sold 861 shares of the company's common stock. The shares were sold at an average price of $261.31, amounting to a total transaction value of approximately $224,987. Following this transaction, Weber holds 59,346 shares in the company.
This sale was reported in a Form 4 filing with the Securities and Exchange Commission, reflecting transactions made on November 27, 2024. Clean Harbors, a leader in hazardous waste management, continues to be a significant player in the environmental services industry.
In other recent news, Clean Harbors has been the focus of several significant developments. BMO Capital Markets recently adjusted its price target for Clean Harbors to $273 from $281, while maintaining an Outperform rating. This change reflects a more cautious outlook due to risks observed in some of the company's cyclical businesses, as evidenced by their third-quarter update of 2024. Despite these challenges, BMO Capital still sees potential for organic growth, particularly in the Environmental Services (ES) segment.
Clean Harbors also reported mixed third-quarter results, with notable growth in the ES and Safety-Kleen Sustainability Solutions (SKSS) segments, despite unfavorable pricing conditions. The company's year-over-year revenue increased by 12%, with adjusted EBITDA up nearly $47 million. The ES segment saw a 13% revenue increase and a 15% rise in adjusted EBITDA, while the SKSS segment reported a 6% revenue increase but fell short of expectations by $11 million.
Ending the quarter with a substantial cash balance of $595 million, Clean Harbors plans to pursue acquisitions and share buybacks. The company revised its adjusted EBITDA guidance for 2024 to a midpoint of $1.11 billion and anticipates mid-single-digit organic revenue growth and adjusted EBITDA growth in the mid to high single digits for 2025. With the upcoming launch of the Kimbell incinerator in Nebraska, these are among the recent developments for Clean Harbors.
InvestingPro Insights
Clean Harbors Inc. (NYSE:CLH) has been demonstrating strong financial performance, as evidenced by recent InvestingPro data. The company's market capitalization stands at $14.03 billion, reflecting its substantial presence in the environmental services sector. Clean Harbors has shown impressive revenue growth, with an 8.37% increase over the last twelve months and a notable 11.99% growth in the most recent quarter.
The company's profitability is also noteworthy, with a gross profit margin of 31.25% and an operating income margin of 11.74% for the last twelve months. These figures suggest that Clean Harbors is effectively managing its costs while growing its top line.
Investors have been rewarded handsomely, as indicated by the company's stellar stock performance. Clean Harbors has delivered a remarkable 59.85% total return over the past year, significantly outperforming many of its peers. This strong performance is further emphasized by the stock trading at 97.37% of its 52-week high, indicating sustained investor confidence.
InvestingPro Tips highlight that Clean Harbors operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations, suggesting a solid financial position. However, it's worth noting that the stock is trading at a high earnings multiple and a high Price/Book ratio, which may indicate that the market has already priced in much of the company's growth potential.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Clean Harbors, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable given the recent insider sale by Executive Vice President Brian P. Weber, as they may offer context to the transaction within the broader financial landscape of the company.
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