SAN ANTONIO—Mike Klonne, a director at XPEL, Inc. (NASDAQ:XPEL), has sold 5,000 shares of the company's common stock. The transaction, which took place on November 19, was executed at a price of $43 per share, totaling approximately $215,000. Following this sale, Klonne retains 50,008 shares indirectly through the Michael A. Klonne Living Trust and directly owns 530 shares.
XPEL, a company known for its coating and engraving services, is based in San Antonio, Texas. The sale of shares by a director is often closely monitored by investors, as it can signal insights into the company's performance or future prospects. However, the motivations behind such transactions can vary widely.
In other recent news, XPEL Incorporated posted a record Q3 revenue of $112.9 million, marking a 9.9% increase year-over-year. The company's strategic initiatives have led to robust growth, with notable increases in cash flow and net income. Despite a 12% quarter-over-quarter revenue decline in China, XPEL anticipates future stabilization due to supply chain improvements. The company expects Q4 revenue to be between $105 million and $107 million, with a projected gross margin of 42.5%.
XPEL has also been focusing on product expansion, launching a new Windshield Protection Film and planning a soft launch for color change films in early 2025. These developments come alongside a 10% increase in EBITDA to $21.7 million and a 9.1% rise in net income to $14.9 million. The company has been pursuing strategic acquisitions and expanding dealership services as part of its growth strategy.
In light of these recent developments, XPEL remains optimistic about its business model's adaptability to market demands and its ability to seize growth opportunities. The company continues to navigate the global market environment with a strategic vision, reflected in its Q3 2024 earnings call.
InvestingPro Insights
While Director Mike Klonne's recent sale of XPEL shares might raise eyebrows, a closer look at the company's financials and market performance provides a more nuanced picture. According to InvestingPro data, XPEL boasts a market capitalization of $1.18 billion, with a price-to-earnings ratio of 24.3, indicating investor confidence in the company's growth potential.
XPEL's financial health appears robust, with InvestingPro Tips highlighting that the company holds more cash than debt on its balance sheet and that its cash flows can sufficiently cover interest payments. This financial stability is crucial for a company in the coating and engraving services sector, where capital investments in technology and equipment are often necessary to maintain a competitive edge.
The company's revenue growth stands at 13.32% over the last twelve months, with a gross profit margin of 41.73%, suggesting strong operational efficiency. XPEL's operating income margin of 14.59% further underscores its ability to manage costs effectively while driving growth.
It's worth noting that XPEL's stock has seen a significant uptick over the last six months, with a price total return of 29.33%. This positive momentum, coupled with analysts predicting profitability for the current year, may provide context for the director's decision to sell a portion of his holdings.
For investors seeking a deeper understanding of XPEL's potential, InvestingPro offers 11 additional tips, providing a comprehensive view of the company's financial health and market position. These insights can be particularly valuable in interpreting insider transactions like Klonne's recent sale.
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