James R. Meyer, a director at FreightCar America, Inc. (NASDAQ:RAIL), has recently acquired 23,400 shares of the company's common stock. The shares were purchased at an average price of $10.74, amounting to a total transaction value of approximately $251,316. Following this transaction, Meyer holds a direct ownership of 838,278 shares. Additionally, Meyer is deemed to beneficially own 17,327 shares indirectly through Cinci-Cebu, Inc., a company he wholly owns.
This acquisition highlights Meyer's continued investment in FreightCar America, a company specializing in the manufacturing of railroad equipment.
In other recent news, FreightCar America, a prominent railcar manufacturing company, has reported an 83% year-over-year revenue increase in its Q3 earnings to $113.3 million. This growth was largely due to the delivery of 961 railcars. The company's adjusted EBITDA also rose to $10.9 million, a significant increase from the $3.5 million reported in the same quarter the previous year.
FreightCar America anticipates continued strong demand for railcars and is focused on expanding its product portfolio. Despite a 20% industry decline in orders, the company has managed to capture 22% of industry orders over the last 12 months. This resilience is reflected in FreightCar America's robust cash position of $44.8 million, with no debt reported.
The company's executives have raised their adjusted EBITDA outlook for 2024, suggesting strong financial health and market confidence. FreightCar America's backlog currently stands at 3,611 railcars, valued at approximately $372 million. These recent developments underline the company's growth and its potential for future expansion.
InvestingPro Insights
James R. Meyer's recent acquisition of FreightCar America (NASDAQ:RAIL) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has demonstrated strong performance, with a 321.28% price total return over the past year and a 166.85% return over the last six months. This robust growth trajectory is further supported by InvestingPro Tips, which indicate that analysts anticipate sales growth in the current year and expect the company to be profitable.
Despite the recent 36.98% price decline over the last week, FreightCar America's fundamentals appear solid. The company's revenue growth is impressive, with a 52.11% increase in the last twelve months and a substantial 82.98% growth in the most recent quarter. This revenue expansion aligns with the InvestingPro Tip suggesting that net income is expected to grow this year.
It's worth noting that FreightCar America operates with a moderate level of debt and its liquid assets exceed short-term obligations, indicating financial stability. These factors may have contributed to Meyer's decision to increase his stake in the company.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for FreightCar America, providing a deeper understanding of the company's financial health and market position.
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