HOUSTON—Ann G. Fox, the President, CEO, and Director of Nine Energy Service, Inc. (NYSE:NINE), recently sold a significant portion of her common stock holdings in the company. According to a recent SEC filing, Fox sold a total of 197,287 shares over two days, November 5 and 6, 2024. The sales were executed at a weighted average price with transactions ranging from $1.001 to $1.149 per share, amounting to a total value of approximately $217,749.
Following these transactions, Fox now holds 561,006 shares directly. The sales reflect Fox's ongoing management of her equity position in the oil and gas field services company, headquartered in Houston, Texas.
In other recent news, Nine Energy Service exceeded its Q3 2024 revenue expectations, reporting a revenue of $138.2 million, which marks a 47% increase in adjusted EBITDA from the previous quarter. Despite a diluted EPS of negative $0.26, the company witnessed growth in its cementing business and coiled tubing revenue. However, Nine Energy anticipates a Q4 2024 revenue decline due to seasonal factors and budget exhaustion, while maintaining a focus on cost reduction and market share gains. The company's cementing business experienced a 12% revenue increase and a 23% market share gain. Additionally, coiled tubing revenue grew by 5% due to better utilization. These are recent developments that have been noted by the company. Despite these positive results, Nine Energy reported a diluted EPS of negative $0.26. However, the company's CEO Ann Fox remains optimistic for 2025, particularly if natural gas prices rise above $3.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Nine Energy Service's financial position and market performance, providing context to Ann G. Fox's recent stock sales. The company's market capitalization stands at $55.07 million, reflecting its current valuation in the oil and gas services sector.
Notably, Nine Energy Service has experienced a significant return of 27.45% over the last week, which aligns with the timing of Fox's stock sales. This short-term price surge could have influenced the decision to sell, potentially capitalizing on a temporary uptick in share value.
However, InvestingPro Tips highlight some challenges facing the company. Nine Energy Service suffers from weak gross profit margins, which is evident in the reported gross profit margin of 17.25% for the last twelve months. Additionally, the company is not profitable over the last twelve months, with a negative P/E ratio of -1.31, indicating ongoing profitability concerns.
These financial metrics provide insight into why company insiders like Fox might be adjusting their holdings. It's worth noting that InvestingPro offers 5 additional tips for Nine Energy Service, which could provide further context for investors analyzing the company's prospects and insider transactions.
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