New York-based V2X, Inc. (NYSE:VVX) witnessed significant stock transactions as major stakeholders reported selling a substantial portion of their holdings. According to a recent SEC filing, American Industrial Partners Capital Fund VI, L.P., along with other entities, sold 2.5 million shares of V2X common stock on November 14, 2024. The shares were sold at an average price of $58.1025, amounting to a total transaction value of approximately $145.26 million.
Following the sale, the reporting entities, including Vertex (NASDAQ:VRTX) Aerospace Holdco LLC and Lightship Capital LLC, still hold a combined total of 13,700,001 shares. Despite these sales, the involved parties, such as AIPCF VI, LLC, maintain a significant stake in the company.
These transactions highlight ongoing adjustments in the ownership structure of V2X, a company specializing in facilities support management services.
In other recent news, V2X, Inc. reported an 8% increase in revenue, totaling $1.08 billion in the third quarter, largely due to the Indo-Pacific region's significant contribution. The company's adjusted EBITDA rose by 28% to $82.7 million, and adjusted diluted EPS increased by 77% to $1.29. V2X also announced a substantial total backlog of $12.2 billion and improved net leverage to 3.27 times.
Additionally, V2X disclosed the initiation of a secondary public offering of 2,500,000 shares of common stock by an existing stockholder. The company clarified that it will not be selling any shares nor will it receive proceeds from this transaction. The completion and terms of the offering are subject to market conditions. Baird, Goldman Sachs (NYSE:GS) & Co. LLC, and Morgan Stanley (NYSE:MS) have been appointed as the lead joint book-running managers for the offering.
Truist Securities maintained its Buy rating on V2X shares, following the company's increased midpoint for its 2024 revenue and adjusted EPS guidance. Despite a 22% decrease in European revenues, V2X secured a $225 million warfighter training readiness contract and expressed optimism about the transition of the F-16 cockpit upgrade contract from development to production. These are all recent developments indicating the company's growth and strategic initiatives.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on V2X's financial position and market performance. The company's revenue for the last twelve months as of Q3 2024 stood at $4.2 billion, with a revenue growth of 7.79%. This growth trend is further supported by an InvestingPro Tip indicating that net income is expected to grow this year, suggesting potential for improved financial performance.
However, investors should note that V2X is currently trading at a high P/E ratio of 162.27, which is relatively high compared to its near-term earnings growth. This valuation metric, coupled with the recent stock sale by major stakeholders, may warrant careful consideration by potential investors.
Interestingly, despite the recent large-scale stock sale, V2X has shown strong returns over the last three months, with a price total return of 18.91%. This positive momentum contrasts with the InvestingPro Tip noting that the stock has taken a big hit over the last week, with a 1-week price total return of -17.09%.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available for V2X, providing a deeper understanding of the company's financial health and market position.
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