DENVER—Michael Stock, the Chief Financial Officer of Liberty Energy Inc. (NYSE:LBRT), a $3 billion market cap energy services company with strong financial health according to InvestingPro metrics, has sold 10,000 shares of the company's Class A common stock. The shares were sold at a price of $18.49 per share, totaling approximately $184,899. Following this transaction, Stock retains ownership of 705,207 shares in the company, which trades at an attractive P/E ratio of 8.7x and has increased its dividend for three consecutive years.
The sale was conducted under a pre-arranged Rule 10b5-1 trading plan that Stock adopted on December 4, 2023, with sales commencing in March 2024. Rule 10b5-1 plans allow company insiders to set up a predetermined schedule for selling stocks to avoid any potential accusations of insider trading. For deeper insights into Liberty Energy's valuation, financial health, and additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Liberty Energy has seen significant leadership changes following the nomination of CEO Christopher A. Wright for U.S. Secretary of Energy. The company has appointed William Kimble as non-executive Chairman of the Board and Ron Gusek as the new CEO. In financial news, Liberty Energy reported robust third-quarter results in 2024, with revenues reaching $1.1 billion and adjusted EBITDA of $248 million. The company also increased its quarterly cash dividend by 14% and spent $39 million on share repurchases.
Several financial adjustments have been made by analyst firms. Stifel maintained a Buy rating but lowered its price target to $25, citing disappointing fourth quarter guidance. RBC Capital Markets also reduced its price target to $23 while maintaining an Outperform rating. Furthermore, Citi downgraded Liberty Energy from Buy to Neutral, lowering its target price to $19 due to revised fourth-quarter EBITDA estimates.
Looking ahead, Liberty Energy executives anticipate increased completions activity and healthy free cash flow generation in 2025. They project Q4 capital expenditures to be around $200 million and forecast 2025 capital expenditures at approximately $650 million. These recent developments indicate that Liberty Energy is committed to efficiency improvements and strategic investments.
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