Eric Dresselhuys, the Chief Executive Officer of ESS Tech, Inc. (NYSE:GWH), recently purchased 1,000 shares of the company's common stock at a price of $5.2271 per share, totaling approximately $5,227. This transaction was reported in a recent SEC Form 4 filing.
Following this purchase, Dresselhuys holds a total of 180,580 shares in the company. It is important to note that a portion of these shares are Restricted Stock Units (RSUs), which represent a contingent right to receive one share of ESS Tech's common stock for each RSU. Additionally, all share numbers reflect adjustments due to a one-for-fifteen reverse stock split completed by ESS Tech on August 23, 2024.
In other recent news, ESS, a large-scale energy storage solutions provider, reported a third-quarter fiscal year 2024 revenue of $359,000. Despite facing project approval and funding delays from a key Australian partner, the company secured a $65 million funding agreement expected to bolster its fourth-quarter revenue recognition. ESS anticipates a year-end total revenue between $9 million and $11 million.
The company also highlighted a new credit agreement with the Export-Import Bank of the United States, a part of the Make More in America Initiative, giving them access to a $50 million financing package. ESS's future plans include the launch of their EC product and a partnership with Honeywell (NASDAQ:HON).
These recent developments reflect the company's strategy to manage cash burn and achieve unit profitability, despite an adjusted EBITDA of negative $18.9 million for Q3. ESS is also exploring financing options to extend its cash runway through 2025. The company remains optimistic about its revenue growth, potentially reaching $40 million to $50 million next year.
InvestingPro Insights
Eric Dresselhuys's recent purchase of ESS Tech, Inc. (NYSE:GWH) shares comes at a time when the company's stock is trading near its 52-week low, according to InvestingPro data. This insider buying activity could be seen as a vote of confidence in the company's future prospects, despite recent market challenges.
InvestingPro Tips reveal that ESS Tech holds more cash than debt on its balance sheet, which may provide some financial flexibility as the company navigates its growth phase. This is particularly relevant given that analysts anticipate sales growth in the current year, although the company is not expected to be profitable this year.
The stock's recent performance has been challenging, with InvestingPro data showing a one-week price total return of -46.04% and a one-year price total return of -72.72%. This significant decline aligns with the InvestingPro Tip indicating that the stock has taken a big hit over the last week and has fared poorly over the last month.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for ESS Tech, providing a deeper understanding of the company's financial health and market position.
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