PHILADELPHIA—Tom George, the Senior Vice President and Chief Financial Officer of Enviri Corp (NYSE:NVRI), recently made significant purchases of the company's common stock. According to a recent SEC filing, George acquired a total of 35,299 shares over two transactions.
The first transaction, conducted on November 8, involved the purchase of 21,956 shares at a weighted average price of $6.92 per share. The second transaction, on November 12, saw George acquiring 13,343 shares at a weighted average price of $7.12 per share. These transactions were valued at approximately $246,937 in total.
Following these acquisitions, George's direct ownership of Enviri Corp shares increased to 81,120. The transactions were executed at prices ranging from $6.855 to $7.12, as per the details provided in the filing.
In other recent news, Enviri Corporation faced a few financial challenges, as revealed in their latest earnings call. The company reported total revenues of $574 million, marking a 4% decrease from the previous year. Despite these challenges, the Clean Earth division of Enviri achieved a record performance with over 20% adjusted EBITDA growth and a 17.5% EBITDA margin. However, the Rail segment encountered operational issues, leading to a $2 million adjusted EBITDA loss for the quarter.
BMO Capital adjusted its outlook on Enviri shares, reducing the price target from $13.00 to $10.00, while maintaining a Market Perform rating. This revision reflects the firm's assessment of near-term challenges faced by the company, particularly in its Rail and HE divisions, as well as concerns over sluggish free cash flow. BMO Capital's stance on Enviri could potentially shift to a more positive one if there were clearer indications of an improvement in cash flow and a reduction in financial leverage.
Enviri has adjusted its 2024 EBITDA outlook to $317 million - $327 million, with a projected negative free cash flow of $10 million for the year. Nevertheless, the company remains optimistic about the future, expecting improved margin expansion, EBITDA, and top-line growth, particularly in the Clean Earth division. Enviri's long-term strategy targets an EBITDA exceeding $400 million by 2027, with free cash flow projected at over $150 million.
InvestingPro Insights
Tom George's recent purchases of Enviri Corp (NYSE:NVRI) stock come at a time when the company's shares are facing significant headwinds. According to InvestingPro data, NVRI's stock has experienced a substantial decline, with a 34.83% drop in the past three months and a 33.05% fall in the last month alone. This context adds weight to the CFO's decision to increase his stake in the company.
The company's financial health presents a mixed picture. While Enviri Corp boasts a market capitalization of $576.17 million, it's currently operating at a loss, with a negative P/E ratio of -11.42 for the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip indicating that the company is not profitable over the last twelve months.
Another InvestingPro Tip suggests that the stock's Relative Strength Index (RSI) indicates it may be in oversold territory. This technical indicator, combined with the CFO's insider buying, could potentially signal that the stock might be undervalued at current levels.
It's worth noting that InvestingPro offers 7 additional tips for Enviri Corp, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects. These insights can be particularly valuable given the stock's recent volatility and the company's complex financial situation.
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