David Scott Schorlemer, Chief Financial Officer of ProPetro Holding Corp. (NYSE:PUMP), recently acquired 4,500 shares of the company's common stock. The purchase, made on November 4, 2024, was executed at a price of $6.86 per share, totaling approximately $30,870. Following this transaction, Schorlemer now directly owns 112,992 shares of ProPetro.
In other recent news, ProPetro Holding Corp. reported a strong third quarter in 2024, despite market challenges. The company announced an 8% increase in Adjusted EBITDA, hitting $71 million, and an adjusted net income of $13 million, a significant leap from a $4 million loss in the previous quarter. ProPetro's revenues for Q3 2024 reached $361 million. Noteworthy developments include the company's strategic shift towards electric frac fleets, with the expectation of a fourth and fifth fleet by early 2025, and its expansion into wireline and cementing sectors through acquisitions. The company also added $100 million to its share repurchase program, totaling $200 million. ProPetro expects to maintain 14 active fleets in Q4 2024, and a range of 14-15 fleets in 2025. However, they also anticipate a sequential revenue decline of about 10% and EBITDA decrementals of 26% to 30%. Despite these challenges, the company remains optimistic about capturing market share with further electric fleet deployment.
InvestingPro Insights
The recent insider purchase by ProPetro's CFO aligns with some interesting financial metrics and trends highlighted by InvestingPro. According to InvestingPro data, ProPetro's stock is currently trading at $6.58, which is 68.12% of its 52-week high. This price point, coupled with the CFO's decision to increase his stake, may suggest that the company's leadership sees potential value in the stock at current levels.
InvestingPro Tips indicate that management has been aggressively buying back shares, which, along with the CFO's recent purchase, could signal confidence in the company's future prospects. However, it's worth noting that the stock has fared poorly over the last month, with a 1-month price total return of -16.59%.
From a valuation perspective, ProPetro's Price to Book ratio stands at 0.81, suggesting the stock might be undervalued relative to its book value. This could be another factor influencing insider buying decisions.
While the company operates with a moderate level of debt, which provides some financial flexibility, InvestingPro Tips also point out that ProPetro has not been profitable over the last twelve months. Nevertheless, analysts predict the company will be profitable this year, which could be a positive sign for investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for ProPetro, providing a deeper insight into the company's financial health and market position.
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