In a recent transaction, 8 Rivers Capital, LLC, a significant stakeholder in NET Power Inc. (NYSE:NPWR), sold a substantial amount of the company's Class A Common Stock. According to the SEC filing, 8 Rivers Capital disposed of a total of 716,987 shares over two days, with sales executed at prices ranging from $7.1203 to $7.3268 per share. The total value of these transactions amounted to approximately $5.15 million.
Following these transactions, 8 Rivers Capital no longer holds any shares of NET Power Inc. The sales were conducted through NPEH, LLC, an entity in which 8 Rivers Capital holds a significant interest. SK Inc., another major stakeholder, is indirectly associated with 8 Rivers through its subsidiaries but has disclaimed beneficial ownership of the securities.
In other recent news, Net Power Inc. has made significant strides in its utility-scale power plant project, signing a $90 million equipment deal with Baker Hughes Energy Services LLC. This agreement, part of the company's ongoing efforts in the energy sector, involves the procurement of specialized equipment and services crucial to the construction of Net Power's inaugural power plant. Despite recent developments, Citi revised its price target for NET Power, reducing it from $11.00 to $8.00, maintaining a neutral rating on the stock. This adjustment was prompted by the complexities of the company's operations and an increase in perceived execution risk following a visit to NET Power's La Porte demonstration facility.
In their Q2 2024 earnings call, NET Power outlined its progress in clean power technology, confirming that their first utility-scale plant, Project Permian, remains on schedule to start between the latter half of 2027 and the first half of 2028. The company ended the quarter with $609 million in cash investments and anticipates an increase in cash flow used in operations due to expansion. These are among the recent developments for NET Power, whose strategic supply chain partnerships aim to deploy multiple plants annually by the early 2030s, targeting competitive power markets in the US and Canada.
InvestingPro Insights
The recent stock sale by 8 Rivers Capital comes at a time when NET Power Inc. (NYSE:NPWR) is experiencing mixed financial signals. According to InvestingPro data, the company's market capitalization stands at $1.72 billion, reflecting its position as a niche player in its industry. This aligns with one of the InvestingPro Tips, which highlights NPWR's role as a specialized entity in its sector.
Despite the significant stock sale, NPWR has shown strong short-term performance. InvestingPro data reveals a 18.26% return over the past week and a 15.42% return over the last month. These figures correspond with an InvestingPro Tip indicating a "significant return over the last week" and "strong return over the last month," suggesting potential market interest in the stock despite the insider selling.
However, investors should note that NPWR faces financial challenges. The company is not profitable over the last twelve months, with a negative gross profit of $1.69 million and an operating income of -$146.11 million. This is reflected in an InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year."
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for NET Power Inc. These tips could provide valuable context for understanding the company's financial position and market performance in light of the recent insider transaction.
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