William Monroe, a significant shareholder of Nine Energy Service, Inc. (NYSE:NINE), recently acquired a substantial amount of the company's common stock. According to a filing with the Securities and Exchange Commission, Monroe purchased a total of 960,000 shares over three consecutive days. The transactions took place between November 19 and November 21, 2024, with purchase prices ranging from $1.1901 to $1.2359 per share.
The total value of these acquisitions amounts to approximately $1,159,545. Following these transactions, Monroe now holds 4,860,000 shares of Nine Energy Service. Monroe's purchases reflect continued confidence in the company's prospects, as he remains a ten percent owner.
In other recent news, Nine Energy Service has reported a Q3 2024 revenue of $138.2 million, exceeding the guidance range and marking a 47% increase in adjusted EBITDA from the previous quarter. Despite a diluted EPS of negative $0.26, the company saw significant growth in its cementing business and coiled tubing revenue. However, Nine Energy projects a decline in revenue for Q4 2024 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, while coiled tubing revenue grew by 5% due to better utilization. Nine Energy also reduced its full-year CapEx guidance to $10 million to $15 million.
Looking forward, Nine Energy anticipates a Q4 2024 revenue decline to between $132 million and $142 million. Despite these projections, CEO Ann Fox expressed optimism for 2025, suggesting a potential increase in activity if natural gas prices rise above $3. These developments are part of Nine Energy's recent strategic initiatives aimed at improving profitability and capitalizing on market opportunities.
InvestingPro Insights
William Monroe's recent substantial purchase of Nine Energy Service, Inc. (NYSE:NINE) shares aligns with some interesting metrics and trends revealed by InvestingPro data. The company's stock has shown significant momentum recently, with InvestingPro Tips highlighting a strong return over the last week (26.09%) and the last month (39.42%). This recent performance may have influenced Monroe's decision to increase his stake.
However, investors should note that Nine Energy Service faces some challenges. According to InvestingPro Tips, the company suffers from weak gross profit margins, which is reflected in the data showing a gross profit margin of 17.25% for the last twelve months as of Q3 2023. Additionally, the company is not profitable over the last twelve months, with a negative P/E ratio of -1.27.
Despite these challenges, Nine Energy Service's liquid assets exceed short-term obligations, potentially providing some financial stability. This factor might have contributed to Monroe's confidence in increasing his position.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Nine Energy Service, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.