In a recent transaction, Robert Taglich, a director and significant shareholder of Air Industries Group (NYSEAMERICAN:AIRI), sold 7,015 shares of the company's common stock. The transaction, which took place on September 13, 2024, saw the shares sold at a price of $7.00 each, amounting to a total value of $49,105.
Taglich's sale represents a notable change in his holdings in the company, which is known for its manufacturing of aircraft parts and auxiliary equipment. Following the sale, Taglich still holds a substantial number of shares in Air Industries Group. The transaction details, disclosed in a regulatory filing, highlight the ongoing trading activities of the company's insiders.
Investors often keep an eye on insider transactions as they provide insights into the perspectives of those who are closely involved with the company. While the reasons behind Taglich's decision to sell a portion of his shares are not disclosed in the filing, such transactions are regularly monitored by the market for indications of a company's financial health and future prospects.
It is important to note that Taglich's relationship with the company extends beyond his role as a director. The shares sold were owned by Taglich Brothers, Inc., where he serves as Managing Director, indicating an indirect ownership. Additionally, he also holds shares as the custodian for his children under the New York Uniform Gifts to Minors Act (NY UGMA).
The disclosure also included information about various derivative securities held by Taglich, such as stock options and convertible notes. However, the focus remains on the direct sale of common stock, which is often of primary interest to investors assessing the real-time actions of a company's insiders.
Air Industries Group has not made any official statement regarding the transaction, and it remains part of the standard disclosure process for insider trading. The company's stock continues to be traded on the NYSE American, and shareholders and potential investors will likely consider this transaction as part of their ongoing assessment of the company.
In other recent news, Air Industries Group has secured a seven-year contract valued at $110 million for the production of Thrust Struts for Geared Turbo-Fan jet engines. This contract is expected to increase the company's backlog to over $280 million and production is slated to begin in January 2025. The company foresees a significant rise in annual sales with this new agreement.
In addition to this, Air Industries Group has reported a return to profitability in the second quarter of 2024, with a gross profit increase of nearly 22% from the same quarter the previous year. The company's revenue also rose modestly by 2.8% compared to the second quarter of 2023. Bookings for the second quarter were strong, showing a 27% increase from the first quarter, and the company's total funded backlog exceeded the $100 million mark.
Looking ahead, Air Industries Group has reaffirmed its 2024 net sales target of at least $50 million and expects the adjusted EBITDA for 2024 to significantly surpass the previous year's. Despite these positive developments, the company anticipates some softness in its third-quarter performance, but remains optimistic for a stronger fourth quarter.
InvestingPro Insights
As Air Industries Group (NYSEAMERICAN:AIRI) makes headlines with insider trading activity, it's crucial for investors to consider the broader financial context of the company. The recent sale by director Robert Taglich may raise questions about the company's current valuation and performance metrics. According to InvestingPro data, Air Industries Group's revenue growth has shown a modest increase of 0.89% over the last twelve months as of Q2 2024, with a quarterly revenue growth of 2.78% in Q2 2024. Despite this growth, the company's gross profit margin remains relatively low at 14.85% over the same period.
InvestingPro Tips suggest that Air Industries Group operates with a moderate level of debt and that its liquid assets exceed short-term obligations, which could be reassuring for investors concerned about the company's financial stability. However, the company has not been profitable over the last twelve months, and its valuation implies a poor free cash flow yield. This may give context to the insider sale, as investors weigh the company's financial health against its stock performance.
Interestingly, the stock has experienced significant price volatility, with a high return over the past year, including a 97.25% one-year price total return as of the latest available date in 2024. This could indicate a potential for both risk and reward for investors considering the stock. For those looking for more insights, there are additional InvestingPro Tips available on the company's performance and valuation, which can be found at https://www.investing.com/pro/AIRI.
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