Ryan Pape, the President and CEO of XPEL, Inc. (NASDAQ:XPEL), recently sold 20,000 shares of the company's common stock. The shares were sold at a weighted average price of $42.6351, totaling approximately $852,702. This transaction was carried out under a Rule 10b5-1 trading plan that Pape adopted on August 20, 2024. Following the sale, Pape now holds 1,105,607 shares directly. The stock was sold in multiple transactions with prices ranging from $42.00 to $43.15 per share.
In other recent news, XPEL Incorporated reported record Q3 2024 revenue of $112.9 million, marking a 9.9% increase year-over-year. Despite challenges in the Chinese market, where revenue declined by 12%, the company's overall performance remained strong with increases in cash flow and net income. U.S. revenue grew by 9.4% to $64.6 million, while Canadian revenue surged by 25.7%. The company also generated $19.6 million in cash flow and reported a 10% increase in EBITDA to $21.7 million.
Net income rose by 9.1% to $14.9 million, with an EPS of $0.54. CEO Ryan Pape shared strategic initiatives for growth, including expanding dealership services and pursuing acquisitions to enhance offerings. The company expects Q4 revenue to be between $105 million and $107 million, with a projected gross margin of 42.5%. XPEL also announced the launch of a new Windshield Protection Film and plans for a soft launch for color change films in early 2025. These recent developments reflect XPEL's strategic vision and ability to adapt to market demands.
InvestingPro Insights
While Ryan Pape's recent stock sale might raise eyebrows, it's important to contextualize this transaction within XPEL's broader financial landscape. According to InvestingPro data, XPEL boasts a market capitalization of $1.18 billion, reflecting its significant presence in the automotive protection film industry. The company's P/E ratio of 24.3 suggests that investors are willing to pay a premium for XPEL's earnings, potentially indicating confidence in its future growth prospects.
InvestingPro Tips highlight that XPEL holds more cash than debt on its balance sheet, which is a positive sign for the company's financial health. This strong liquidity position is further reinforced by the fact that XPEL's liquid assets exceed its short-term obligations. These factors may provide some reassurance to investors concerned about the CEO's stock sale.
It's worth noting that XPEL has seen a large price uptick over the last six months, with a 29.33% total return. This recent performance aligns with the InvestingPro Tip indicating that XPEL has delivered a strong return over the last five years. However, the stock's price movements are quite volatile, which could explain why insiders like Pape might choose to diversify their holdings.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on XPEL, providing a deeper understanding of the company's financial position and market performance.
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