Corey J. Booker, a director at Mammoth Energy Services, Inc. (NASDAQ:TUSK), has sold a portion of his holdings in the company. According to a recent SEC filing, Booker sold a total of 25,000 shares over two transactions. The sales took place on November 22 and November 25, with share prices ranging from $3.43 to $3.47. The total value of these transactions amounted to $86,350.
Following these sales, Booker holds 125,488 shares of Mammoth Energy. These transactions reflect Booker's ongoing management of his investment in the company, which operates in the oil and gas field services sector.
In other recent news, Mammoth Energy Services reported a transition in its executive leadership, with CEO Arty Straehla set to retire at the end of the year, and Phil Lancaster taking over the role on January 1, 2025. Lancaster, currently the Vice President of Corporate Development at Mammoth, brings over two decades of experience in the energy sector. In addition to this change, the company announced its third-quarter results, which showed a decrease in revenue and a net loss.
The total revenue for Q3 2024 was $40 million, a 22% dip from the previous quarter, primarily due to a downturn in natural gas markets. The net loss was reported at $23.4 million, or $0.50 per diluted share. Despite these results, Mammoth has cleared its debts and is preparing for growth, planning to invest in infrastructure services and equipment modernization.
Mammoth's financial position was significantly bolstered by a settlement with the Puerto Rican Power Authority, allowing the company to repay its $50.9 million credit facility and achieve a debt-free status. The company is also exploring mergers and acquisitions to expand within existing business lines and new verticals. Mammoth expects an increase in demand in the latter half of 2025 and has increased its 2024 CapEx budget to $23 million in anticipation. These are some of the recent developments within Mammoth Energy Services.
InvestingPro Insights
While Corey J. Booker's recent sale of Mammoth Energy Services (NASDAQ:TUSK) shares might raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, TUSK has seen a significant return of 14.73% over the last week, despite a 15.47% decline in the past month. This volatility aligns with the company's current market dynamics.
InvestingPro Tips highlight that TUSK has a high shareholder yield and analysts anticipate sales growth in the current year. These factors could potentially offset concerns about the director's stock sale. However, it's worth noting that the company is not profitable over the last twelve months, with a negative P/E ratio of -0.79.
TUSK's price-to-book ratio stands at 0.61, suggesting the stock might be undervalued relative to its book value. This could be of interest to value investors, especially considering the company's strong return over the last five years, as pointed out by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for TUSK, providing a deeper understanding of the company's financial health and market position.
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