Audrey Dunning, a director at Quest Resource (NASDAQ:QRHC) Holding Corp (NASDAQ:QRHC), recently purchased 1,400 shares of the company's common stock. The transaction, which took place on November 20, involved shares priced at $6.71 each, amounting to a total value of $9,398.
In a related transaction on August 16, Dunning acquired 10,176 shares through the conversion of restricted stock units, which vested on the first anniversary of their grant date. Following these transactions, Dunning now holds a total of 15,576 shares directly.
In other recent news, Quest Resource Holding Corp. reported a 3.3% increase in year-over-year revenue in its third-quarter earnings call, reaching $72.8 million. This growth was fueled by the addition of seven new clients, contributing $16 million, but was somewhat offset by weaker market conditions and client attrition. Despite a 5.9% decline in gross profit due to a shift in revenue mix and higher service costs, the company remains hopeful about future growth, underpinned by a strong pipeline and cost savings from new technology.
The company has onboarded nine new clients this year and projects over $20 million in net incremental revenue from new clients in 2025. Management is also focused on enhancing its technology platform and client service capabilities. However, it faced a $13 million revenue decline due to weaker market conditions and client attrition, along with a decrease in gross profit due to unexpected billing credits and a shift in revenue mix.
These are recent developments that highlight the company's resilience amid challenges and its commitment to future growth. Despite temporary increases in Days Sales Outstanding (DSOs), improvements are being targeted. Quest Resource has taken corrective actions to address billing inaccuracies that led to significant credits impacting gross profit, expressing confidence in future performance.
InvestingPro Insights
The recent insider purchase by Audrey Dunning aligns with some intriguing financial metrics and analyst perspectives on Quest Resource Holding Corp (NASDAQ:QRHC). According to InvestingPro data, QRHC has a market capitalization of $149.36 million, reflecting its position as a small-cap company in the environmental services sector.
Despite the company's recent stock performance, with a 14.02% decline over the past month, there are some positive indicators for potential investors to consider. An InvestingPro Tip suggests that net income is expected to grow this year, which could signal improving financial health. This expectation is further supported by analysts' predictions that the company will be profitable this year, as noted in another InvestingPro Tip.
However, it's important to note that QRHC is currently not profitable over the last twelve months, with a negative P/E ratio of -22.55. This metric, combined with the InvestingPro Tip indicating that the company may have trouble making interest payments on debt, suggests that investors should carefully consider the company's financial position.
On a more positive note, QRHC's liquid assets exceed its short-term obligations, which could provide some financial flexibility. Additionally, the company has shown a strong return over the last five years, potentially indicating long-term value creation for shareholders.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for QRHC, providing a deeper understanding of the company's financial health and market position.
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