Stephen Charles Taylor, a director at Natural Gas Services Group Inc . (NYSE:NGS), has sold shares of the company's common stock totaling approximately $338,919, according to a recent regulatory filing. The transactions occurred on November 15 and November 18, with shares sold at prices ranging from $25.006 to $25.511 per share.
Following these sales, Taylor retains ownership of 524,903 shares directly, with an additional 133,701 shares held indirectly in a Rabbi Trust. The sales were executed as part of a pre-established Rule 10b5-1 trading plan, which allows for the planned sale of stocks by insiders to avoid accusations of insider trading.
In other recent news, Natural Gas Services Group, Incorporated displayed a strong financial performance in its Q3 2024 earnings call. The company reported a substantial 35% year-over-year increase in rental revenue, reaching $37.4 million, and a 54% increase in adjusted EBITDA to $18.2 million. Total (EPA:TTEF) revenue reached $40.7 million, with a rental gross margin percentage of 61.3%.
In light of these results, Natural Gas Services Group revised its 2024 adjusted EBITDA guidance upward, now expecting a range of $67 million to $69 million. This indicates a projected 48% growth over the previous fiscal year. The company also plans to expand its large horsepower rental fleet by 100,000 horsepower over the next five quarters.
Despite challenges in the natural gas market, Natural Gas Services Group is focusing on contracts with blue-chip customers to expand its fleet. The company is also leveraging data to enhance business operations and has seen a positive upward bias in pricing. These recent developments position the company for continued success and shareholder value creation.
InvestingPro Insights
Natural Gas Services Group Inc. (NYSE:NGS) has been experiencing significant growth and financial strength, as evidenced by recent InvestingPro data. The company's revenue growth of 41.72% over the last twelve months as of Q3 2024 demonstrates robust expansion, aligning with the insider's decision to sell shares potentially to realize gains.
InvestingPro Tips highlight that NGS is trading near its 52-week high, with a strong return of 68.26% over the last year. This performance may have influenced the director's decision to sell, capitalizing on the stock's upward momentum. Additionally, the company's profitability is noteworthy, with an operating income margin of 23.07% for the same period.
It's worth noting that while the stock has shown impressive returns, the RSI suggests it may be in overbought territory, which could explain the timing of the insider's sale. For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for NGS, providing a deeper understanding of the company's financial health and market position.
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