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APi Group Corp (NYSE:APG) director James E. Lillie has recently sold a significant amount of company stock, totaling over $4.1 million. The transactions occurred on August 5, 2024, and were carried out through JTOO LLC, an entity for which Lillie serves as the manager.
The sales involved two separate transactions of APi Group's common stock. In the first transaction, 105,205 shares were sold at a weighted average price of $32.91 per share, with individual sale prices ranging from $32.45 to $33.43. The second transaction consisted of 19,795 shares sold at a weighted average price of $33.57 per share, with sale prices varying between $33.45 to $33.83.
Following these transactions, the shares owned by JTOO LLC were reduced, but Lillie, through indirect ownership, still holds a sizable amount of APi Group shares. It is noted that the sales were executed in accordance with a Rule 10b5-1 trading plan, which was adopted by JTOO LLC on November 29, 2023.
Investors and followers of APi Group Corp will be interested to note that, despite these sales, Lillie maintains a significant stake in the company. The reported shares are held by entities with which Lillie is associated, and the transactions were disclosed in compliance with SEC regulations.
In other recent news, APi Group Corporation reported a mix of Q2 financial results, including record adjusted EBITDA and margin, along with record adjusted free cash flow, despite a slight 2% decrease in net revenues. The company successfully closed six bolt-on acquisitions, including Elevated Facility Services, and remains optimistic for the second half of the year. APi Group anticipates a positive impact on margins from its business mix and is confident in achieving a 13% or more adjusted EBITDA margin by 2025. The company also plans to reduce net leverage below 2.5x by the end of the year while continuing its M&A strategy. Furthermore, there is approximately $400 million remaining under its share repurchase authorization.
Safety Services segment revenue increased by 4.4% to $1.28 billion, driven by U.S. life safety, while Specialty Services segment revenue decreased by 18.4% to $453 million due to project delays and customer attrition. Despite these challenges, APi Group remains focused on free cash flow and reducing its net debt-to-adjusted EBITDA ratio. The company expects lower revenues but increased adjusted EBITDA for Q3 and full-year 2024. The data center market has also been identified as a significant growth driver, offering opportunities in various sectors.
These are just some of the recent developments at APi Group, a company that continues to demonstrate a strong commitment to its strategic goals and long-term growth.
InvestingPro Insights
Amid the news of APi Group Corp (NYSE:APG) director James E. Lillie's stock sale, investors may be seeking a deeper understanding of the company's financial health and market performance. According to InvestingPro data, APi Group Corp has a market capitalization of $8.85 billion. The company's revenue for the last twelve months as of Q2 2024 stands at $6.874 billion, with a modest revenue growth of 0.75%. Despite recent volatility, the company's gross profit margin remains strong at 29.9%, indicating a solid capability to manage costs relative to income.
InvestingPro Tips reveal that analysts are predicting net income growth for APi Group Corp this year, which could signal an upcoming turnaround from the previous twelve months' lack of profitability. This aligns with the company's reported EBITDA growth of 28.9% over the same period, underscoring potential operational efficiency improvements. However, it's worth noting that 9 analysts have revised their earnings estimates downwards for the upcoming period, reflecting a cautious outlook that may be influenced by the stock's recent performance, with a one-week price total return showing a significant drop of 14.78%.
The company's stock price volatility is also highlighted by InvestingPro Tips, which could be a factor for investors to consider when evaluating the timing of their investment decisions. For those interested in exploring further, there are additional InvestingPro Tips available, providing more nuanced insights into APi Group Corp's financials and market expectations.
With a recent closing price of $33.2, APi Group Corp's stock is trading at 80.77% of its 52-week high, which may present an opportunity for investors looking for potential value. The company's fair value is estimated at $43 by analysts, while InvestingPro's fair value assessment comes in slightly lower at $29.81. Investors can delve into a comprehensive analysis of APi Group Corp, including additional InvestingPro Tips, by visiting https://www.investing.com/pro/APG.
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