Hatch S. Ray, the President and CEO of Quest Resource (NASDAQ:QRHC) Holding Corp (NASDAQ:QRHC), recently purchased 2,817 shares of the company's common stock. The transaction was executed on November 12, 2024, at a weighted average price of $7.1668 per share, amounting to a total value of $20,188. Following this acquisition, Hatch now directly owns 44,149 shares of Quest Resource Holding Corp's common stock. Additionally, he holds deferred stock units as part of the company's 2012 Incentive Compensation Plan, which brings his total ownership to 85,367 shares.
In other recent news, Quest Resource Holding Corp. reported a slight increase in revenue by 3.3% year-over-year to $72.8 million in its third-quarter earnings call. The growth was primarily driven by the addition of seven new clients, which contributed $16 million, despite facing weaker market conditions and client attrition. However, the company saw a decrease in gross profit by 5.9% due to a change in revenue mix, increased service costs, and unexpected billing credits.
Quest Resource is projecting over $20 million in net incremental revenue from new clients in 2025, not including potential growth from existing clients. The company is also focusing on enhancing its technology platform and client service capabilities to drive future growth.
Despite a temporary increase in Days Sales Outstanding (DSOs), Quest Resource is implementing improved processes to prevent future errors and is confident in improving this metric. The company reassured investors about corrective actions taken and expressed confidence in future performance. These are the recent developments for Quest Resource Holding Corp.
InvestingPro Insights
The recent insider purchase by Quest Resource Holding Corp's CEO, Hatch S. Ray, comes at a time when the company's stock has faced significant headwinds. According to InvestingPro data, QRHC has experienced a 28.28% price decline over the past six months, with a 10.76% drop in just the last week. This insider buying activity could be interpreted as a vote of confidence in the company's future prospects, despite recent market challenges.
InvestingPro Tips highlight that while Quest Resource Holding Corp was not profitable over the last twelve months, analysts predict the company will turn a profit this year. This aligns with another InvestingPro Tip indicating that net income is expected to grow this year. These projections may explain why the CEO chose to increase his stake in the company.
It's worth noting that QRHC's liquid assets exceed its short-term obligations, which could provide some financial stability as the company works towards profitability. However, investors should be aware that the stock is trading at a high EBIT valuation multiple, suggesting that the market may already be pricing in some of the anticipated growth.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for QRHC, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.