Charles Dutil, a director at REV Group, Inc. (NYSE:REVG), has sold 12,500 shares of the company's common stock, according to a recent SEC filing. The transaction, which took place on September 18, 2024, was executed at a price of $28.50 per share, resulting in a total value of $356,250.
The sale has adjusted Dutil's holdings in the company to 41,628 shares of common stock. This move by a key member of REV Group's board is noteworthy for investors tracking insider activity as an indicator of the company's performance and direction.
REV Group, Inc., based in Wisconsin, is a manufacturer of specialty vehicles, including ambulances, fire trucks, and recreational vehicles, among others. The company plays a significant role in the motor vehicles and passenger car bodies industry.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into the confidence levels of a company's executives and directors in the firm's prospects. However, it is essential to note that these transactions may not always be indicative of future performance and can be subject to various personal financial needs or strategies of the individual insiders.
The details of the transaction have been made public through the mandatory filing with the Securities and Exchange Commission, providing transparency into the trading activities of the company's insiders.
In other recent news, REV Group, a manufacturer of specialty vehicles, reported mixed financial results for the third quarter of fiscal year 2024. Despite a significant sales decline in the recreational vehicle market, the company's Specialty Vehicles segment, particularly its ambulance and fire group businesses, showed improved performance. The consolidated backlog of orders remained strong at $4.4 billion, primarily driven by orders for fire and emergency vehicles. The company's net debt stood at $165 million, with an expectation to maintain leverage below 1x.
Looking ahead, REV Group anticipates modest sequential revenue growth and a slightly higher specialty vehicles margin as the fiscal year closes. The company also forecasts full-year revenue between $2.35 billion and $2.45 billion, with adjusted EBITDA guidance of $155 million to $165 million. In light of these developments, Baird has maintained its Outperform rating on REV Group shares, citing the company's operational performance and slight EBITDA guidance increase as positive factors. The firm's analysis suggests that the stock should eventually trade closer to the mid-$30s, not taking into account any potential asset sales or future mergers and acquisitions that might occur.
These are among the recent developments that shape REV Group's current financial landscape.
InvestingPro Insights
As investors digest the news of Charles Dutil's recent sale of REV Group shares, insights from InvestingPro provide a broader context for evaluating the company's financial health and market performance. Notably, REV Group's management has shown confidence in the company's value through aggressive share buybacks, an action that often signals a belief in underpriced stock (InvestingPro Tip #0). Additionally, the company boasts a high shareholder yield, which combines dividend payments and share repurchases to measure the total returns to shareholders (InvestingPro Tip #1).
From a data perspective, REV Group's market capitalization stands at $1.44 billion, reflecting its position in the industry (InvestingPro Data). The P/E ratio, a metric that can help assess whether a stock is over or undervalued, is currently at 6.3, indicating that the stock could be trading at a low earnings multiple compared to industry peers (InvestingPro Data). Furthermore, the company's performance over the last year has been strong, with a price total return of 112.8%, showcasing significant growth for investors during this period (InvestingPro Data).
For readers interested in a deeper dive into REV Group's financials and market predictions, InvestingPro offers additional tips that can guide investment decisions. Currently, there are 13 more InvestingPro Tips available for REV Group, which can be accessed for further analysis and insight.
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