In a recent transaction, Glenn E. Lytle Jr., Senior Vice President of Commercial Sales at Shenandoah Telecommunications Co. (NASDAQ:SHEN), acquired 220 shares of the company's common stock. The purchase, which took place on November 15, was made at a price of $12.761 per share, amounting to a total investment of $2,807. Following this transaction, Lytle now holds a total of 2,000 shares in the company.
In other recent news, Shenandoah Telecommunications Company, Shentel, has reported significant growth in its third-quarter revenue and customer base, largely due to the expansion of its Glo Fiber service and the integration of the former Horizon markets. The company's revenue saw a 30% increase, reaching $87.6 million, while the adjusted EBITDA rose by 31% to $26.6 million. A notable addition of 6,000 net subscribers to the Glo Fiber service was reported, bringing the total customer count to over 59,000.
The integration of Horizon markets is progressing smoothly, with an expected increase in synergy savings of $11 million by the second quarter of 2025. Shentel's broadband network now covers roughly 554,000 homes and businesses, with fiber serving 59% of these. The company maintains a strong liquidity position at $473 million and a net leverage ratio of 2.8 times.
Looking forward, Shentel anticipates sustained growth in the Glo Fiber service and plans to extend its customer base in unserved regions through government grants. The company has a substantial construction pipeline and intends to add 28,000 government-subsidized fiber passings in the upcoming years. These recent developments underscore Shentel's strategic focus and commitment to expanding its broadband footprint.
InvestingPro Insights
Glenn E. Lytle Jr.'s recent purchase of Shenandoah Telecommunications Co. (NASDAQ:SHEN) shares comes at a time when the company faces several financial challenges. According to InvestingPro data, SHEN's market capitalization stands at $702.73 million, with the stock trading at $13.1 as of the previous close. This price represents only 53.29% of its 52-week high, reflecting a significant decline in value over the past year.
InvestingPro Tips highlight that SHEN is currently not profitable over the last twelve months, with net income expected to drop this year. The company's valuation implies a poor free cash flow yield, which could be a concern for investors. These factors may explain the stock's underperformance, with a one-year price total return of -45.19%.
Despite these challenges, it's worth noting that SHEN has maintained dividend payments for 30 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield stands at 0.76%, with a 25% dividend growth in the last twelve months.
Lytle's insider purchase might be seen as a vote of confidence in the company's future prospects. However, potential investors should consider that SHEN's short-term obligations exceed its liquid assets, as pointed out by another InvestingPro Tip. This financial position could pose risks to the company's operational flexibility.
For a more comprehensive analysis, InvestingPro offers 7 additional tips for SHEN, providing deeper insights into the company's financial health and market position. These additional tips could be valuable for investors looking to make informed decisions about SHEN stock.
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