Ian G.H. Ashken, a director at APi Group Corp (NYSE:APG), recently sold a significant amount of the company's stock. According to a recent filing, Ashken disposed of 53,868 shares of APi Group's common stock, totaling approximately $1.99 million. The shares were sold at a weighted average price of $36.87 per share, with prices ranging from $36.63 to $37.15.
Following this transaction, Ashken retains ownership of 5,478,779 shares indirectly through IGHA Holdings, LLLP, and other entities. The transaction was conducted under a 10b5-1 trading plan, which was adopted on August 7, 2024.
In other recent news, APi Group Corporation has reported a year-over-year revenue increase of 2.4%, bringing the total to $1.83 billion. This growth was mainly driven by the Safety Services segment, which experienced a 9% organic growth. However, the company also faced challenges, including project delays, which are expected to impact revenues by $150 million. Despite these hurdles, APi Group remains optimistic about its growth and margin improvement into 2025, targeting a 13% adjusted EBITDA margin.
The company also reported a rise in adjusted EBITDA by 9.4% and an increase in adjusted gross margin to 31%. Adjusted diluted earnings per share also saw growth, rising to $0.51. According to APi Group's CEO, Russ Becker, the company has a strong M&A pipeline and is committed to disciplined project selection, contributing to their positive future outlook.
Notably, these are recent developments and should be considered by investors. However, it is important to note that these figures are estimates and may vary based on future business conditions and market fluctuations.
InvestingPro Insights
While Ian G.H. Ashken's recent stock sale might raise eyebrows, it's crucial to consider APi Group Corp's (NYSE:APG) broader financial picture. According to InvestingPro data, APi Group boasts a substantial market capitalization of $9.94 billion, reflecting its significant presence in the market. The company's revenue for the last twelve months as of Q3 2024 stood at $6.92 billion, with a modest revenue growth of 0.64% over the same period.
InvestingPro Tips highlight that APi Group's net income is expected to grow this year, which could be a positive sign for investors despite the director's stock sale. Additionally, the company's liquid assets exceed short-term obligations, indicating a strong financial position. However, it's worth noting that APi Group has not been profitable over the last twelve months, with a negative P/E ratio of -21.48.
Interestingly, analysts predict that the company will turn profitable this year, which aligns with the expected net income growth. This potential turnaround could explain why the stock has shown a strong return over the last five years, as another InvestingPro Tip points out.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with over 10 more tips available for APi Group. These tips could provide valuable context to the recent insider sale and help investors make more informed decisions.
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