In a recent transaction on July 18, Gregory M. Shepard, identified as a member of the 10% owner group of Atlas (NYSE:ATCO) Energy Solutions Inc. (NYSE:AESI), acquired additional shares of the company. The transaction involved the purchase of 3,248 shares of common stock at a price of $21.68 per share, amounting to a total investment of $70,416.
This move by Shepard reflects a growing stake in the energy firm, as the shares acquired add to an already substantial holding. Following the purchase, Shepard's total ownership in Atlas Energy Solutions Inc. stands at 7,503,197 shares of common stock.
Atlas Energy Solutions Inc., which operates in the crude petroleum and natural gas sector, is known for its focus on energy and transportation. The transaction was made public through a Form 4 filing with the Securities and Exchange Commission, which documents insider trades.
Investors often monitor such insider transactions as they can provide insights into the company's performance and insider perspectives on the value of the stock. Gregory M. Shepard's recent purchase might be interpreted by the market as a positive signal regarding the company's future prospects.
As a member of the 10% owner group, Shepard's transactions are closely watched, and this latest acquisition is no exception. The details of the transaction, including the number of shares purchased and the total value, are now available for investors to consider as they assess the company's stock and its potential trajectory.
In other recent news, Atlas Energy Solutions Inc. reported a robust Q1 2024 performance, with total sales reaching $193 million, adjusted EBITDA at $76 million, and net income at $27 million. The company successfully integrated Hi-Crush post-acquisition and announced a 5% dividend increase to $0.22 per share, reflecting confidence in its financial strength. The Dune Express construction is on track, with the commissioning process expected to start in Q4.
However, Citi has reduced its price target for Atlas Energy Solutions to $25, maintaining a Buy rating despite anticipating a challenging second quarter due to a fire at the company's Kermit facility. The aftermath of the incident is expected to affect the upcoming earnings report, with a return to more stable operations projected for the third quarter. Citi's adjusted EBITDA estimate for the second quarter is now at approximately $74 million, slightly below the consensus of $78 million.
Piper Sandler also revised Atlas Energy Solutions' stock price target to $25.00, down from the previous $29.00, but maintained its Overweight rating on the company's shares. This adjustment is based on updated financial estimates, including an anticipated EBITDA of $748 million and net debt of $411 million by the second quarter of 2024.
Atlas Energy Solutions also announced the appointment of Brian McConn as Executive Vice President of Sales and Marketing. With over a decade of experience in the industry, McConn is expected to enhance Atlas's commercial strategy and market presence. These are the recent developments for Atlas Energy Solutions.
InvestingPro Insights
Amidst the recent insider buying activity at Atlas Energy Solutions Inc., where Gregory M. Shepard increased his stake in the company, current data and analysis from InvestingPro provide a broader financial context for investors considering the stock. With a market capitalization of $2.26 billion and a Price/Earnings (P/E) ratio of 12.42, Atlas Energy Solutions Inc. appears to be valued reasonably in comparison to earnings. The company also shows a strong revenue growth of 13.35% over the last twelve months as of Q1 2024, which might have been a factor in Shepard's decision to increase his investment.
InvestingPro Tips highlight that analysts predict Atlas Energy Solutions will be profitable this year and that the company has been profitable over the last twelve months. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid liquidity position that could reassure investors of its ability to meet its immediate financial commitments. On the other hand, investors should note that four analysts have revised their earnings expectations downwards for the upcoming period, which could signal potential headwinds or a more conservative outlook on the company's future earnings.
For investors looking for more in-depth analysis and additional InvestingPro Tips on Atlas Energy Solutions Inc., there are more tips available at: https://www.investing.com/pro/AESI. For those interested in a subscription, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of financial data and expert insights to inform your investment decisions.
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