HOUSTON—Theodore R. Moore, Senior Vice President, General Counsel, and Secretary at Nine Energy Service, Inc. (NYSE:NINE), recently sold 26,776 shares of the company’s common stock. The shares were sold at a weighted average price of $0.971 per share, with the transaction totaling approximately $25,999.
Following this sale, Moore retains ownership of 154,160 shares in the company. The shares were sold in multiple transactions, with prices ranging from $0.943 to $1.003.
Nine Energy Service, headquartered in Houston, provides oil and gas field services.
In other recent news, Nine Energy Service reported a strong Q3 performance, with revenue surpassing expectations at $138.2 million, marking a significant 47% increase in adjusted EBITDA from the previous quarter. Despite a diluted EPS of negative $0.26, the company witnessed growth in its cementing business and coiled tubing revenue. However, a decline in Q4 revenue is anticipated due to seasonal factors and budget exhaustion, while the company maintains a focus on cost reduction and market share gains.
Nine Energy's cementing business saw a 12% revenue increase and a 23% market share gain, and its coiled tubing revenue grew by 5%. The company also managed to reduce its full-year CapEx guidance to $10 million to $15 million. While the US land market experienced a 3% decline in the average rig count, the company's strategic focus on market share and effective pricing led to significant gains in the cementing sector.
These are recent developments for Nine Energy, which is looking forward to a potential increase in activity in 2025 if natural gas prices rise above $3. CEO Ann Fox expressed optimism for the coming year and outlined the company's strategic approach, which has led to market share gains and solid performances. Despite current lower numbers, the company is also pursuing international expansion, particularly in the Middle East.
InvestingPro Insights
In light of Theodore R. Moore's recent stock sale, it's worth examining Nine Energy Service's current financial position and market performance. According to InvestingPro data, the company's market capitalization stands at $55.07 million USD, reflecting its position in the oil and gas field services sector.
One of the most striking InvestingPro Tips reveals that Nine Energy Service has seen a significant return over the last week, with a 27.45% price total return. This recent uptick is particularly noteworthy given the context of Moore's stock sale and the company's overall performance.
Despite this short-term gain, the company faces challenges. Another InvestingPro Tip indicates that Nine Energy Service suffers from weak gross profit margins. This is corroborated by the data showing a gross profit margin of 17.25% for the last twelve months as of Q3 2023, which may be a concern for investors considering the company's profitability.
It's also worth noting that the company's revenue for the same period was $556.75 million USD, with a revenue growth of -11.92%. This decline in revenue, coupled with the weak profit margins, could explain why insiders like Moore might choose to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 5 more InvestingPro Tips available for Nine Energy Service, which could provide valuable context for understanding the company's financial health and market position.
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