Stephen Charles Taylor, a director at Natural Gas Services Group Inc . (NYSE:NGS), has sold a significant portion of the company's common stock, according to a recent SEC filing. Over the course of three days ending November 21, Taylor sold a total of 46,516 shares, generating approximately $1.24 million. The shares were sold at prices ranging from $25.50 to $26.892.
Following these transactions, Taylor's direct ownership stands at 478,387 shares. Additionally, he holds 133,701 shares indirectly through a Rabbi Trust. These sales were conducted under a Rule 10b5-1 trading plan established earlier this year.
In other recent news, Natural Gas Services Group, Incorporated reported robust financial performance in its Q3 2024 earnings call. The company noted a significant 35% year-over-year increase in rental revenue, reaching $37.4 million, and a 54% rise in adjusted EBITDA to $18.2 million. Total (EPA:TTEF) revenue reached $40.7 million, with a rental gross margin percentage of 61.3%.
In light of these results, Natural Gas Services revised its 2024 adjusted EBITDA guidance upward, now expecting a range of $67 million to $69 million, indicating a projected 48% growth over the previous fiscal year. The company plans to expand its large horsepower rental fleet by 100,000 horsepower over the next five quarters.
Despite challenges in the natural gas market, Natural Gas Services is focusing on contracts with blue-chip customers to expand its fleet. Furthermore, the company is leveraging data to enhance business operations and has seen a positive upward bias in pricing. These recent developments position the company for continued success and shareholder value creation.
InvestingPro Insights
Natural Gas Services Group Inc. (NYSE:NGS) has been experiencing significant momentum in the market, which aligns with the recent insider selling activity. According to InvestingPro data, NGS has shown a strong return of 38.72% over the last month and an impressive 81.53% over the past year. This performance has pushed the stock to trade near its 52-week high, with the current price at 97.95% of that peak.
The company's financial health appears robust, with InvestingPro Tips indicating that NGS's liquid assets exceed short-term obligations. This solid financial position is further supported by the company's profitability over the last twelve months and analysts' expectations of continued profitability this year.
However, investors should note that the stock's Relative Strength Index (RSI) suggests it may be in overbought territory, which could explain the director's decision to sell shares at this time. Despite this, NGS's growth prospects remain positive, with net income expected to grow this year and a remarkable revenue growth of 41.72% in the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for NGS, providing a deeper understanding of the company's financial position and market performance.
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