In a recent move, 8 Rivers Capital, LLC and SK Inc. have sold shares of NET Power Inc. (NYSE:NPWR), with the total value of the transactions amounting to approximately $557,703. The shares were sold at prices ranging from $7.0015 to $7.0062.
The transactions, which took place between October 3 and October 7, involved the sale of Class A Common Stock by both entities. On October 3, a total of 10,433 shares were sold at an average price of $7.0021. The following day saw a sale of 5,419 shares at an average price of $7.0062. On October 7, two separate sales occurred: one of 8,871 shares at an average price of $7.0057 and another of 54,922 shares at an average price of $7.0015.
These sales follow an exchange of Class A Units of NET Power Operations LLC for Class A Common Stock, where 1,015,000 units were exchanged on September 25. Correspondingly, an equal number of Class B Common Stock shares, which have no economic value, were cancelled.
8 Rivers Capital, as the manager and approximately 91.4% equity holder of NPEH, LLC, may be deemed a beneficial owner of the securities directly owned by NPEH. However, they have disclaimed beneficial ownership of these securities, except to the extent of any pecuniary interest. Similarly, SK Inc., which indirectly beneficially owns 100% of each of Tillandsia, Inc., Areca, Inc., and Chamaedorea, Inc., may be deemed a beneficial owner of the securities beneficially owned by 8 Rivers and NPEH. SK Inc. also disclaims beneficial ownership of these securities, except for any pecuniary interest.
The recent sales by 8 Rivers Capital and SK Inc. signal a shift in their holdings in NET Power Inc., a company specialized in electrical industrial apparatus. Investors tracking insider transactions will note these sales as part of the ongoing financial developments within the company.
In other recent news, Net Power Inc. has made significant strides in its pursuit of clean power technology. The company recently entered into a $90 million equipment deal with Baker Hughes Energy Services LLC, marking a key milestone for their utility-scale power plant project. The agreement involves the procurement of a turboexpander and other essential process equipment, collectively known as KPEP.
In addition to this major deal, Net Power Inc. also held its Q2 2024 earnings call where they confirmed the progress of their first utility-scale plant, Project Permian. The project remains on schedule to start between the latter half of 2027 and the first half of 2028. The company ended the quarter with $609 million in cash investments and anticipates an increase in cash flow used in operations due to expansion.
Net Power Inc. has also been under the analyst's lens with Citi revising its price target for the company from $11.00 to $8.00, maintaining a neutral rating. This adjustment followed a visit to Net Power's La Porte demonstration facility, where the complexities of the company's operations led to a reassessment of the cost of capital. Despite this, Net Power Inc. continues its strategic efforts to deploy multiple plants annually by the early 2030s, focusing on the commercial viability of their clean power solution.
InvestingPro Insights
The recent share sales by 8 Rivers Capital and SK Inc. align with several key metrics and trends observed in NET Power Inc.'s (NYSE:NPWR) financial profile. According to InvestingPro data, NET Power's stock has experienced significant price declines, with a 53.49% drop over the past year and a 26.08% fall in the last three months. This downward trend is reflected in the company's current trading price, which is near its 52-week low at 45.9% of its 52-week high.
Despite these challenges, NET Power maintains a strong liquidity position. An InvestingPro Tip highlights that the company "holds more cash than debt on its balance sheet," which could provide some financial flexibility during this period of share sales and market volatility. Additionally, another InvestingPro Tip notes that "liquid assets exceed short term obligations," further underlining the company's solid financial footing in the short term.
However, investors should be aware that NET Power faces profitability challenges. The company's gross profit margin is weak, with a negative 710.08% for the last twelve months as of Q2 2024. This is compounded by the fact that NET Power is "not profitable over the last twelve months," as pointed out by another InvestingPro Tip.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for NET Power, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.