Aaron Wilkins, the Chief Financial Officer of Northwest Pipe Co . (NASDAQ:NWPX), recently disclosed the sale of 2,500 shares of the company's common stock. The transactions took place over two days, with 300 shares sold on November 18 at a price of $53.10 each, and an additional 2,200 shares sold on November 19 at $53.60 per share. The total value of these transactions amounted to $133,850.
Following these sales, Wilkins holds 22,895 shares directly. The sales were conducted under a pre-established trading plan adopted on August 19, 2024.
In addition to his common stock holdings, Wilkins maintains indirect ownership of 5,865 Restricted Stock Units and 17,598 Performance Shares, which are subject to vesting conditions.
In other recent news, Northwest Pipe Company (NASDAQ:NWPX) reported a strong third-quarter performance, marked by a 9.7% year-over-year increase in net sales to $130.2 million and a 40% rise in gross profit to $27 million. The company's Steel Pressure Pipe segment saw a 6.7% revenue increase to $85.9 million, while the precast segment grew by 15.8% to $44.3 million. Despite a decrease in the SPP segment's backlog and challenges in non-residential construction, the company expects a strong fourth quarter and continued growth into 2025.
Northwest Pipe Company's consolidated net income reached $10.3 million, up from $5.8 million the previous year. The company aims to enhance cost efficiency, improve margins, and pursue strategic acquisitions. With a stable steel price around $700 per ton contributing to a favorable margin outlook, the company anticipates a robust bidding environment to continue through 2024 and into 2025.
CEO Scott Montross emphasized the importance of cash flow management, with the company reporting strong margins in the SPP segment and expecting to maintain approximately 19% margins in Q4. The projected CapEx for 2025 is between $16 million and $18 million, with an active pursuit of M&A opportunities. These recent developments indicate Northwest Pipe Company's strategic vision for growth and resilience amidst market fluctuations.
InvestingPro Insights
Northwest Pipe Co. (NASDAQ:NWPX) has been experiencing significant momentum in the market, as evidenced by its impressive stock performance. According to InvestingPro data, the company's stock has shown a remarkable 104.17% total return over the past year, with a 52.96% return in just the last six months. This strong performance aligns with the timing of CFO Aaron Wilkins' recent stock sales, which were executed at prices near the stock's 52-week high.
The company's financial health appears robust, with a market capitalization of $530.45 million and a P/E ratio of 18.01. Northwest Pipe's revenue growth of 9.54% over the last twelve months suggests steady business expansion, while its EBITDA growth of 22.84% indicates improving operational efficiency.
InvestingPro Tips highlight that Northwest Pipe has a perfect Piotroski Score of 9, signaling strong financial stability. Additionally, the company is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.71, potentially indicating an undervalued stock despite its recent price surge.
It's worth noting that while the stock has shown strong returns, an InvestingPro Tip suggests that the RSI indicates the stock may be in overbought territory. This could provide context for Wilkins' decision to sell shares at this time.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Northwest Pipe Co., providing a deeper understanding of the company's financial position and market outlook.
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