Oceaneering International Inc (NYSE:OII) Director M. Kevin McEvoy has sold a significant number of company shares, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on August 20, 2024, involved the sale of 9,675 shares of common stock at a weighted average price of $26.12, totaling approximately $252,711.
Investors keeping an eye on insider transactions will note that the shares were sold in multiple transactions at prices ranging from $25.98 to $26.185. The company has stated that it is willing to provide full information regarding the number of shares sold at each price point to the SEC staff or any security holder upon request.
Following the sale, McEvoy's ownership in the company has been adjusted to 141,837 shares of common stock. This move by a key director is often watched by market participants for insights into insider perspectives on the company's valuation and prospects.
Oceaneering International Inc, with its headquarters in Houston, Texas, operates in the oil and gas field services industry and is known for its advanced applied technology and engineering services.
The sale was signed off by Jennifer F. Simons, Attorney-in-Fact for M. Kevin McEvoy, with the formal documentation submitted to the SEC on August 21, 2024. As is customary, the exact details of the transactions are made available in the SEC filing for those interested in the specifics of the insider trading activity.
In other recent news, Oceaneering International Inc. reported a net income of $35 million, or $0.34 per share, on revenue of $669 million for the second quarter of 2024. The company's consolidated bookings for the quarter surpassed $1 billion, with a manufactured products backlog worth $713 million. Oceaneering anticipates sequential improvements in the third quarter, projecting adjusted EBITDA to be between $95 million and $105 million. The company's strategy focuses on continued growth in the energy markets and increasing its presence in non-energy sectors. The company's ROV fleet is expected to see around a 20% reprice each quarter, with increased pricing already in effect due to existing contracts. Oceaneering projects their full-year 2024 consolidated adjusted EBITDA to be in the range of $340 million to $370 million. The company remains committed to its growth strategy in energy markets and aims to increase participation in non-energy growth markets. Oceaneering's positive outlook for the upcoming quarters is backed by a robust order backlog that includes long-duration projects, providing visibility into 2026 and 2027. The anticipation of improved pricing and margins for new large awards in the manufactured products business further strengthens Oceaneering's position as it navigates through the latter half of 2024.
InvestingPro Insights
Oceaneering International Inc (NYSE:OII) has recently seen significant insider trading activity, with Director M. Kevin McEvoy’s sale of shares drawing attention to the company’s financial status and market valuation. Investors analyzing this movement may find the following real-time data and InvestingPro Tips valuable for a deeper understanding of the company’s current market position.
The company's market capitalization stands at $2.65 billion, reflecting its standing in the oil and gas field services industry. Despite the insider sale, Oceaneering International's financial metrics indicate a company with solid growth potential, as evidenced by a robust revenue growth of 14.65% over the last twelve months as of Q2 2024. This growth is further substantiated by a quarterly revenue increase of 11.86% in Q2 2024.
An InvestingPro Tip highlights that Oceaneering International is trading at a low Price/Earnings (P/E) ratio relative to near-term earnings growth, with a current P/E ratio of 21.2. This could suggest that the stock is undervalued compared to its earnings potential. Additionally, analysts predict the company will be profitable this year, which is supported by the fact that it has already been profitable over the last twelve months, with a basic EPS (Continued Operations) of $1.23.
However, not all indicators are positive. The company suffers from weak gross profit margins, currently at 16.93%, which may be a point of concern for cost management and profitability. Also, the stock price movements have been quite volatile, which could be a risk factor for investors seeking stability.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available for Oceaneering International Inc, which can be found at https://www.investing.com/pro/OII. These tips provide further insights into the company's financial health and market performance. Currently, there are 9 additional InvestingPro Tips listed for Oceaneering International, including details on its debt levels, dividend policy, and asset liquidity.
Given the dynamic nature of the market and the complexities of insider transactions, these InvestingPro Insights can offer valuable context to investors monitoring Oceaneering International’s performance and future prospects.
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