Joshua C. Lee, General Counsel at Origin Materials Inc. (NASDAQ:ORGN), has recently sold shares worth $10,906. The sale, which took place on November 14, involved 8,784 shares of the company’s common stock at a weighted-average price of $1.2416 per share. This transaction was executed to cover tax withholding obligations related to the vesting and settlement of restricted stock units, and not as a discretionary move by Lee. Following this sale, Lee retains ownership of 477,410 shares in the company.
In other recent news, Origin Materials, Inc. announced during its Third Quarter 2024 Earnings Call that it is preparing for the commercial production of its innovative PET caps. This follows a successful Factory Acceptance Test of its first CapFormer System. The company reported an increase in Q3 revenue to $8.2 million from $7.1 million year-over-year, and a strong cash position of $113 million. Origin Materials is expected to see significant growth from its caps and closures business starting in 2025. The company intends to deploy at least eight CapFormer Systems by the end of 2025 and has a $100 million MOU in place, with positive EBITDA projected for the first half of 2026. Origin Materials is also exploring strategic partnerships and is in ongoing discussions for more business in caps and closures. These are among the recent developments for the company.
InvestingPro Insights
The recent insider sale by Origin Materials Inc.'s General Counsel comes at a time when the company's stock is facing significant headwinds. According to InvestingPro data, Origin Materials has experienced a sharp 15.5% decline in its stock price over the past week, with a more substantial 23.78% drop over the last month. This downward trend aligns with an InvestingPro Tip indicating that the stock's Relative Strength Index (RSI) suggests it is in oversold territory.
Despite the recent price decline, Origin Materials' financial position presents a mixed picture. The company holds more cash than debt on its balance sheet, which is a positive sign for its liquidity. This is further supported by another InvestingPro Tip highlighting that the company's liquid assets exceed its short-term obligations. However, investors should note that Origin Materials is quickly burning through cash, which could be a concern for its long-term financial stability.
From a valuation perspective, Origin Materials is trading at a Price to Book ratio of 0.45 as of the last twelve months ending Q3 2024, suggesting the stock may be undervalued relative to its book value. However, the company's profitability remains a challenge, with an InvestingPro Tip noting that analysts do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Origin Materials, providing a deeper understanding of the company's financial health and market position.
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