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Peter K. Johansson, Senior Vice President and Chief Financial and Strategy Officer of CECO Environmental Corp (NASDAQ:CECO), recently sold 22,500 shares of the company’s common stock. The transaction comes as InvestingPro analysis shows the stock trading at a relatively high P/E ratio of 59.8x, with shares down nearly 24% year-to-date. The shares were sold at a weighted average price of $22.797 per share, totaling approximately $512,932. Following this transaction, Johansson holds 62,160 shares directly in the $775 million market cap company. According to InvestingPro’s Fair Value model, CECO appears overvalued at current levels, though analysts maintain price targets between $33-$40.
Additionally, 653 shares were withheld to cover tax liabilities related to the vesting of restricted stock units, valued at approximately $14,888. After these transactions, Johansson’s direct ownership amounts to 61,507 shares. For deeper insights into insider transactions and comprehensive analysis, check out CECO’s detailed Pro Research Report, available exclusively on InvestingPro, along with 8 additional ProTips about the company’s prospects.
In other recent news, CECO Environmental Corp. has completed the sale of its Fluid Handling business to May River Capital for approximately $110 million in cash. This divestiture is part of CECO’s strategy to focus on growth opportunities in energy and industrial markets, and the proceeds are earmarked for debt reduction and strategic growth investments. In financial developments, CECO has revised its full-year 2024 revenue guidance downward due to customer-driven project delays, now expecting revenues between $555 to $558 million, down from the initial range of $575 to $600 million. Adjusted EBITDA projections have also been lowered, with estimates now at $62 to $63 million.
Despite these challenges, CECO reported record bookings of over $210 million for Q4 2024, leading to its highest-ever backlog levels. Additionally, CECO has announced a change in its auditor, appointing Deloitte & Touche LLP to replace BDO USA, P.C., effective February 2025, as part of efforts to strengthen its financial reporting processes. On the analyst front, Craig-Hallum reaffirmed a Buy rating on CECO’s shares and increased the price target to $40, following the acquisition of Profire Energy (NASDAQ:PFIE) for $123 million. The acquisition is expected to enhance CECO’s margins and align with its market expansion strategy, particularly in the Energy Transition sector. These developments reflect CECO’s ongoing strategic initiatives and adjustments in response to market conditions.
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