NPEH, LLC, a significant shareholder in NET Power Inc. (NYSE:NPWR), has recently sold a substantial portion of its holdings in the company. According to an SEC filing, the firm offloaded a total of 716,987 shares of Class A Common Stock over two days.
The transactions took place on October 16 and 17, with shares sold at weighted average prices of $7.1203 and $7.3268, respectively. The sales amounted to a total value of approximately $5.15 million.
Following these transactions, NPEH, LLC no longer holds any shares in NET Power Inc. The sales were executed in multiple trades, with prices ranging from $7.00 to $7.555 per share.
In other recent news, Net Power Inc. has made significant progress in its utility-scale power plant project by entering a $90 million agreement with Baker Hughes Energy Services LLC. The deal involves the procurement of specialized equipment and services crucial for the construction of Net Power's inaugural utility-scale power plant. The partnership between Net Power and Baker Hughes is a strategic step in developing the power plant, which is expected to feature innovative technology for energy generation.
Simultaneously, during NET Power's Q2 2024 earnings call, the company outlined its progress in clean power technology. The company confirmed 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.
In addition, 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 made following a visit to NET Power's La Porte demonstration facility, where the complexities of the company's operations and an increase in perceived execution risk led to a reassessment of the cost of capital. Despite the adjustments made by Citi, the company continues to focus on the commercial viability of their clean power solution, targeting competitive power markets in the US and Canada.
InvestingPro Insights
The recent sale of NET Power Inc. (NYSE:NPWR) shares by NPEH, LLC comes at a time when the company's stock has shown significant volatility. According to InvestingPro data, NET Power has experienced a strong return of 18.26% over the last week and 15.42% over the last month, potentially influencing the timing of NPEH's decision to sell.
Despite these short-term gains, NET Power faces some financial challenges. An InvestingPro Tip indicates that the company suffers from weak gross profit margins, which is reflected in the data showing a negative gross profit margin of -710.08% for the last twelve months as of Q2 2023. This weakness in profitability may have contributed to NPEH's decision to exit its position.
Another relevant InvestingPro Tip suggests that analysts do not anticipate the company will be profitable this year. This aligns with the reported operating income margin of -61,391.18% for the last twelve months, highlighting the significant hurdles NET Power faces in achieving profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for NET Power, providing a deeper understanding of the company's financial position and market performance.
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