Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
Ryan D. Miller, Chief Financial Officer of TPI Composites, Inc. (NASDAQ:TPIC), recently acquired 10,000 shares of the company's common stock. The purchase, made on November 12, 2024, was executed at a price of $2.24 per share, amounting to a total transaction value of $22,400. Following this transaction, Miller's direct ownership of TPI Composites stock increased to 32,239 shares. This move reflects a strategic decision by the CFO as the company continues to navigate the market.
In other recent news, TPI Composites reported a slight increase in its third-quarter revenue for 2024, with net sales rising by 2.8% to $380.8 million. The company also saw a significant boost in Adjusted EBITDA, which jumped to $8 million from the previous year's $0.2 million. These are among the recent developments for the wind blade manufacturing leader.
In addition, TPI Composites is undergoing a strategic transition, with 10 production lines shifting to next-generation blades, and plans to reopen its Iowa plant by mid-2025. Despite facing a projected 40% drop in Turkish volumes for 2025 and a revised adjusted EBITDA outlook to a loss of about 2% for 2024, the company remains optimistic about its long-term growth prospects, particularly in the U.S. market and its service operations.
In terms of analyst notes, the company's revenue guidance for 2024 is approximately $1.35 billion. TPI Composites is also exploring the potential for capacity expansion at a brownfield site, with details expected in early 2024. Lastly, the company welcomed new board member Jennifer Lowery, effective November 13, 2024.
InvestingPro Insights
Ryan D. Miller's recent purchase of TPI Composites (NASDAQ:TPIC) shares comes at a time when the company faces significant challenges. According to InvestingPro data, TPIC's stock has taken a substantial hit, with a 56.91% decline over the past month and a 43.32% drop in the last three months. This context makes the CFO's decision to increase his stake particularly noteworthy.
The company's financial health appears precarious, as highlighted by several InvestingPro Tips. TPIC operates with a significant debt burden and may have trouble making interest payments on its debt. Moreover, the company is quickly burning through cash, which could explain its negative gross profit margin of -2.98% for the last twelve months as of Q3 2023.
Despite these challenges, Miller's purchase might signal confidence in the company's long-term prospects. However, investors should note that analysts do not anticipate the company will be profitable this year, and TPIC has not been profitable over the last twelve months.
The stock's current price of $2.12 is significantly below the fair value of $4.00 based on analyst targets, suggesting potential upside if the company can overcome its financial hurdles. For readers seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for TPIC, providing a deeper understanding of the company's financial situation and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.