In a remarkable display of market resilience, Natural Gas Services Group Inc (NYSE:NGS) stock has soared to a 52-week high, reaching a price level of $28.59, with analysts setting price targets between $32 and $45. According to InvestingPro data, the company maintains strong financial health with a current ratio of 1.76. This peak reflects a significant uptrend for the energy sector player, which has seen an impressive 1-year return of nearly 90%. Investors have shown increased confidence in NGS, as the company capitalizes on the robust demand in the natural gas services industry, achieving a remarkable revenue growth of 42% and maintaining a healthy gross profit margin of 56%. The 52-week high milestone underscores the company’s strong performance and the positive sentiment surrounding its growth prospects. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US stocks.
In other recent news, Natural Gas Services Group Incorporated (NGS) reported a significant increase in its financial performance for Q3 2024. The company’s rental revenue saw a 35% year-over-year increase, reaching $37.4 million, and adjusted EBITDA surged by 54% to $18.2 million. Total (EPA:TTEF) revenue for the quarter was $40.7 million, with a rental gross margin percentage of 61.3%.
In light of these results, NGS revised its 2024 adjusted EBITDA guidance upward to a range of $67 million to $69 million, indicating an anticipated 48% growth over the previous fiscal year. The company also announced plans to expand its large horsepower rental fleet by 100,000 horsepower over the next five quarters.
In addition to these financial highlights, NGS announced the retirement of David Bradshaw from its Board of Directors. His departure is not due to any disagreements with the company or its management. Despite challenges in the natural gas market, NGS is focusing on contracts with blue-chip customers to expand its fleet and leveraging data to enhance business operations. These are recent developments that position the company for continued success.
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