FreightCar America executive sells $90,000 in company stock

FreightCar America, Inc. (NASDAQ:RAIL), a leading manufacturer in the railroad equipment industry, has reported a notable transaction involving William D. Gehl, a member of the company's board of directors. According to a recent filing, Gehl sold 12,500 shares of common stock at a price of $7.2 per share, resulting in a total transaction value of $90,000.

The transaction took place on August 29, 2024, and was disclosed in a Form 4 filing with the Securities and Exchange Commission. Following the sale, Gehl still retains a substantial stake in the company, with 157,608 shares of FreightCar America's common stock remaining in his possession.

Investors often monitor insider transactions as they can provide insights into the company's financial health and future prospects. In this case, Gehl's decision to sell a portion of his holdings has been made public, offering transparency into the trading activities of FreightCar America's insiders.

FreightCar America, headquartered in Chicago, Illinois, specializes in the design and manufacture of freight cars, with a focus on innovation and quality. The company's stock is traded under the ticker symbol "RAIL" on the NASDAQ exchange.

For those following FreightCar America's market performance, this transaction serves as a recent development in the company's ongoing financial narrative. Stakeholders may consider how insider sales such as this one could potentially impact their investment decisions regarding FreightCar America's stock.

In other recent news, FreightCar America, a prime player in the freight car manufacturing industry, reported a strong second quarter in 2024. The company experienced a significant surge in revenue, with a 66% year-over-year increase, and achieved a record adjusted EBITDA of $12.1 million. The quarter also saw the highest order intake since the fourth quarter of 2014, with new orders totaling 2,916 units, valued at $285 million.

FreightCar America has shown confidence in its continued growth by raising its full-year revenue and adjusted EBITDA forecasts. The company now expects its full-year revenue to be between $560 million and $600 million, and its adjusted EBITDA to be between $35 million and $39 million. Additionally, the company secured a significant multiyear tank car conversion order, broadening its product offerings.

These recent developments come as the company addresses working capital issues from the previous year and continues to focus on commercial and operational excellence initiatives. FreightCar America also anticipates delivering between 4,300 to 4,700 railcars in the full year, with revenue from the tank car conversion order expected to be recognized starting in 2026. Despite an increase in SG&A expenses due to mark-to-market adjustments on stock-based compensation awards, the company maintains a strong cash position with $39.4 million and no debt, setting a solid foundation for future growth.

InvestingPro Insights

As FreightCar America, Inc. (NASDAQ:RAIL) navigates through the financial year, recent data and insights from InvestingPro could be crucial for investors assessing the company's potential. Here are some key InvestingPro Data metrics and Tips that may help in evaluating FreightCar America's current market standing:

InvestingPro Data reveals that FreightCar America has experienced significant revenue growth over the last twelve months, with an increase of 29.31%. This upward trend is also reflected in the quarterly figures, showing a 66.39% rise in revenue in Q2 2024. Despite these strong growth numbers, the company's P/E ratio remains negative at -10.2, suggesting that investors are expecting future earnings to improve from the current loss-making position.

From an investment standpoint, two InvestingPro Tips are particularly noteworthy. First, analysts are anticipating sales growth in the current year, which aligns with the company's recent revenue growth trajectory. Second, the stock has delivered a significant return over the last week, month, three months, and even the last year, with a one-year price total return of 181.36%. This could indicate strong market confidence in the company's future performance.

However, it's also important to note that FreightCar America does not pay a dividend to shareholders, which might be a consideration for income-focused investors. Additionally, with a high return over the last year and a recent price uptick, the Relative Strength Index (RSI) suggests the stock is currently in overbought territory. This could imply that the stock might see a consolidation or pullback in the near term.

For those interested in a deeper analysis, InvestingPro offers additional tips on FreightCar America, which can be accessed through the dedicated page for the company. As of now, there are 16 more InvestingPro Tips available, providing a comprehensive look at various aspects of the company's financial health and market performance.

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