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Eric W. Gerstenberg, Co-CEO of Clean Harbors Inc . (NYSE:CLH), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Gerstenberg offloaded 6,051 shares of common stock on November 15 at a price of $250.42 per share, amounting to a total transaction value of approximately $1.52 million. Following this sale, Gerstenberg retains ownership of 55,657 shares in the company.
Clean Harbors, a leader in hazardous waste management, has seen its stock fluctuating in recent months, making insider transactions like this one noteworthy for investors tracking the company's performance.
In other recent news, Clean Harbors experienced mixed results in the third quarter of 2024 with a notable 12% increase in year-over-year revenue and a nearly $47 million rise in adjusted EBITDA. Despite facing challenges due to unfavorable pricing conditions, the Environmental Services (ES) and Safety-Kleen Sustainability Solutions (SKSS) segments performed strongly. The ES segment saw a 13% revenue increase and a 15% rise in adjusted EBITDA, while the SKSS segment revenue rose by 6%. However, the SKSS segment reported an $11 million shortfall against expectations.
BMO Capital Markets adjusted its expectations for Clean Harbors, reducing the stock's price target to $273 from the previous $281, while maintaining an Outperform rating. This shift reflects a more cautious stance on the company's near-term prospects due to the observed risks in some of its cyclical businesses. Despite these challenges, BMO Capital believes that Clean Harbors has significant opportunities for margin improvement, particularly in the ES segment.
Clean Harbors ended Q3 with a cash balance of $595 million, with plans to pursue acquisitions and share buybacks. The company revised its adjusted EBITDA guidance for 2024 to a midpoint of $1.11 billion. Looking ahead, Clean Harbors anticipates mid-single-digit organic revenue growth and adjusted EBITDA growth in the mid to high single digits for 2025. The company is optimistic about its future, particularly with the upcoming launch of the Kimbell incinerator in Nebraska. These are among the recent developments for Clean Harbors.
InvestingPro Insights
Clean Harbors Inc. (NYSE:CLH) has demonstrated strong financial performance, which may provide context for Eric W. Gerstenberg's recent stock sale. According to InvestingPro data, the company's revenue growth stands at 8.37% over the last twelve months as of Q3 2024, with an impressive quarterly revenue growth of 11.99% in Q3 2024. This robust growth is complemented by a healthy EBITDA margin of 18.53% for the same period.
InvestingPro Tips highlight that Clean Harbors has been a high performer, with a strong return over the last year and decade. This aligns with the stock's impressive YTD price total return of 41.76% as of the latest data. The company's financial health appears solid, with liquid assets exceeding short-term obligations and operations maintained with a moderate level of debt.
However, investors should note that Clean Harbors is trading at a high P/E ratio of 32.16, which is relatively high compared to its near-term earnings growth. This valuation metric, along with the company's high Price / Book multiple of 5.27, suggests that the stock may be priced at a premium.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Clean Harbors, providing a more comprehensive view of the company's financial position and market performance.
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