Gregory M. Shepard, a member of the 10% owner group at Atlas (NYSE:ATCO) Energy Solutions Inc. (NYSE:AESI), recently acquired a significant amount of the company's stock. According to a recent SEC filing, Shepard purchased a total of 65,386 shares of common stock over two transactions on October 31 and November 1, 2024. The shares were bought at prices ranging from $19.30 to $19.57 per share, totaling approximately $1.27 million. Following these transactions, Shepard's direct ownership stands at 7,605,692 shares.
In other recent news, Atlas Energy Solutions reported a 6% increase in revenue in its third-quarter earnings call, rising to $304 million with an adjusted EBITDA of $71.1 million. The company also disclosed operational advancements, including progress on the Dune Express project, aimed at enhancing proppant delivery in the Permian Basin. Despite facing challenges such as a fire at the Kermit facility and damage to a new dredge, Atlas Energy Solutions announced a dividend increase to $0.24 per share and a $200 million share repurchase program over the next 24 months, indicating a strong financial position.
These recent developments also include the sale of six million tons of product, generating $145.3 million in sales, and service revenues amounting to $159.1 million for the quarter. The company anticipates a slowdown in E&P activities during the holiday season but expects operational expenses to normalize by year-end.
Looking ahead, Atlas Energy Solutions projects that service margins will align with historical averages and Q4 EBITDA will be flat to down compared to Q3. The company is also preparing for a potential decrease in CapEx in 2025 following the completion of the Dune Express project. Despite the sand market's challenges with potential exits and pricing pressures, Atlas Energy Solutions remains committed to improving efficiency and increasing shareholder value.
InvestingPro Insights
Gregory M. Shepard's recent $1.27 million investment in Atlas Energy Solutions Inc. (NYSE:AESI) aligns with several positive indicators highlighted by InvestingPro. The company's strong financial performance is evident in its impressive revenue growth of 48.67% over the last twelve months, with an even more robust 93.15% growth in the most recent quarter. This growth trajectory supports the InvestingPro Tip that analysts anticipate sales growth in the current year.
Despite the recent insider purchase, AESI's stock has faced some headwinds, with the InvestingPro data showing a 15.63% decline in the past month. This aligns with the InvestingPro Tip noting that the stock has fared poorly over the last month. However, this dip might present an opportunity for investors, considering the stock's current price of $19.16 is below both the fair value of $24.00 based on analyst targets and the InvestingPro Fair Value of $23.86.
Atlas Energy Solutions Inc. maintains a healthy financial position with a moderate level of debt, as noted by an InvestingPro Tip. This prudent financial management is reflected in the company's ability to offer a substantial dividend yield of 5.27%, which has seen remarkable growth of 68.33% over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for AESI, providing deeper insights into the company's financial health and market position.
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