HOUSTON—Thomas W. Powell, a significant shareholder of Powell Industries Inc. (NASDAQ:POWL), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Powell sold 2,451 shares of common stock on October 11, 2024. The shares were sold at a weighted average price of approximately $262.10, with prices ranging from $261.97 to $262.31. The total value of the transaction amounted to $642,401.
Following this transaction, Powell holds 1,628,328 shares indirectly through TWP Holdings and 682,265 shares directly. Additionally, 4,000 shares are held indirectly by Kimberly R. Powell, his spouse. Powell has stated that he disclaims beneficial ownership of the shares held by his spouse, except to the extent of his pecuniary interest.
In other recent news, Powell Industries reported a significant increase in its fiscal third-quarter revenues for 2024, with a surge of 50% compared to the previous year. The company's net income more than doubled, reaching $46.2 million, and a gross profit margin of 28.4% was achieved. New orders booked during the quarter amounted to $356 million, with a notable expansion in the electric utility sector.
Despite a steady backlog at $1.3 billion, Powell Industries conveyed confidence in its market position and backlog convertibility, contributing to higher revenue. The company is progressing with expansion plans and expects to use its strong cash flow for working capital, capital expenditures, research and development, and potential acquisitions.
However, the light rail traction power sector saw a decrease of 25% due to selectivity in the market. On a positive note, significant growth was reported in both the electric utility and commercial/industrial sectors, with increases of 30% and 18% respectively. These are recent developments that showcase Powell Industries' robust growth and strong operational execution.
InvestingPro Insights
Powell Industries Inc. (NASDAQ:POWL) has been experiencing significant growth and market appreciation, as evidenced by recent InvestingPro data. The company's stock has shown remarkable performance, with a 233.56% price total return over the past year and a staggering 202.97% year-to-date return. This aligns with Thomas W. Powell's recent stock sale, potentially indicating a strategic decision to capitalize on the stock's strong performance.
The company's financial health appears robust, with revenue growth of 44.78% in the last twelve months as of Q3 2024, and an impressive EBITDA growth of 208.6% over the same period. These figures suggest that Powell Industries is in a phase of substantial expansion, which may have contributed to the stock's recent rally.
InvestingPro Tips highlight that Powell Industries holds more cash than debt on its balance sheet and has maintained dividend payments for 12 consecutive years, indicating financial stability. However, the stock is currently trading near its 52-week high, with an RSI suggesting it may be in overbought territory. This could explain why a major shareholder like Thomas W. Powell might choose to sell a portion of his holdings at this time.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Powell Industries, providing a deeper insight into the company's financial position and market outlook.
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