In a recent transaction, NPEH, LLC, a significant shareholder in NET Power Inc. (NYSE:NPWR), sold a substantial number of shares in the company. The sales, which occurred on two separate dates, resulted in a total transaction value exceeding $1.68 million.
On October 9, 2024, NPEH, LLC sold 122,591 shares of NET Power Inc. at a weighted average price of $6.9477 per share. This sale was part of multiple trades with prices ranging from $6.90 to $7.04. Following this transaction, the shareholder's remaining stake in the company was 837,487 shares.
Two days later, on October 11, the shareholder sold an additional 120,500 shares at a weighted average price of $6.9163 per share. These shares were also sold in various trades, with individual prices between $6.90 and $7.00. After this sale, NPEH, LLC's ownership in NET Power Inc. decreased to 716,987 shares.
The transactions were disclosed in compliance with SEC regulations, and the details, including the number of shares sold at each price, are available upon request. These sales reflect a significant change in NPEH, LLC's investment in NET Power Inc., a company specializing in electrical industrial apparatus manufacturing.
Investors and analysts often scrutinize such transactions by major shareholders as they can provide insights into the shareholder's view of the company's current valuation and future prospects. However, the reasons behind NPEH, LLC's decision to reduce its holdings in NET Power Inc. at this time have not been publicly disclosed.
In other recent news, Net Power Inc. has entered into a significant agreement with Baker Hughes Energy Services LLC, valued at approximately $90 million. The deal involves the acquisition of specialized equipment and services necessary for the construction of Net Power's inaugural utility-scale power plant. The remaining payments for this agreement are scheduled to continue through April 2026, with a definitive purchase agreement expected to be signed in 2025.
In a recent earnings call, Net Power Inc. confirmed that their first utility-scale plant, Project Permian, is on track 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.
Citi has revised its price target for Net Power Inc., reducing it from $11.00 to $8.00, while maintaining a neutral rating on the stock. This adjustment was made after a visit to Net Power's La Porte demonstration facility, where the complexities of the company's operations and an increase in perceived execution risk led to a reassessment of the cost of capital.
These are recent developments in the ongoing efforts of Net Power Inc. to establish its presence in the energy sector. The company's strategic supply chain partnerships aim to deploy multiple plants annually by the early 2030s, focusing on the commercial viability of their clean power solution in competitive power markets in the US and Canada.
InvestingPro Insights
The recent share sales by NPEH, LLC come at a time when NET Power Inc. (NYSE:NPWR) is facing several challenges, as revealed by InvestingPro data and tips. The company's stock has experienced significant downward pressure, with InvestingPro data showing a one-year price total return of -53.57% as of the latest available data. This aligns with the InvestingPro Tip that the stock price has "fallen significantly over the last year."
Moreover, NET Power's financial health appears to be under strain. The company is not profitable over the last twelve months, and analysts do not anticipate profitability this year, according to InvestingPro Tips. This is reflected in the negative P/E ratio of -19.18 for the last twelve months as of Q2 2024. The company also suffers from weak gross profit margins, with InvestingPro data showing a staggering -710.08% gross profit margin for the same period.
Despite these challenges, NET Power maintains some financial stability. An InvestingPro Tip notes that the company "holds more cash than debt on its balance sheet," which could provide some cushion during this difficult period. Additionally, the stock is trading near its 52-week low, which may interest value investors looking for potential turnaround opportunities.
For readers seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for NET Power Inc., providing a deeper understanding of the company's position in the electrical industrial apparatus manufacturing industry.
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