Blue Bird Corp (NASDAQ:BLBD) has reported significant trading activity by its Chief Executive Officer, Phil Horlock. According to the latest filings, Horlock sold a substantial amount of company stock, totaling over $2.3 million.
On August 23, Horlock sold 16,080 shares at a weighted average price of $47.34, with the transactions ranging from $46.84 to $47.73 per share. Following this, on August 26, he sold an additional 32,159 shares at an average price of $48.93, within a price range of $48.77 to $49.25 per share. The total value of the shares sold by Horlock amounted to approximately $2,334,767.
Prior to these sales, the CEO also acquired shares through option exercises on August 22 and 23, totaling 48,239 shares at a fixed price of $16.20 per share, amounting to $781,471. These transactions were made under predetermined trading plans, which often allow corporate insiders to sell a set number of shares at a time when they might not otherwise be allowed to conduct transactions due to insider trading policies.
Investors typically watch insider trading activities as an indicator of executives' confidence in the company's prospects. The sale of a large portion of stock by an executive could be interpreted in multiple ways, and it's not always clear whether such transactions are based on personal financial planning decisions or a viewpoint on the company's future performance.
Blue Bird Corp, known for its production of school buses and other commercial vehicles, continues to be a key player in the automotive manufacturing industry. The transactions have been duly filed with the Securities and Exchange Commission and are publicly available for investors' scrutiny.
In other recent news, Blue Bird Corporation reported a record-breaking fiscal 2024 third-quarter earnings, demonstrating a significant increase in profitability and raising its full-year guidance. The company achieved a 14.5% adjusted EBITDA margin and saw a surge in net orders for buses, including electric bus sales, with a backlog of over 5,200 units. This represents approximately $775 million in potential revenue.
Blue Bird is also planning to expand its production capacity, supported by an $80 million grant from the Department of Energy. This expansion is projected to allow the company to produce up to 14,000 buses annually and create about 400 new jobs.
The company anticipates fiscal 2024 revenue to hit $1.315 billion with an adjusted EBITDA of $175 million. For fiscal 2025, projections indicate revenue between $1.4 billion and $1.5 billion, with an adjusted EBITDA of $180 million to $200 million.
However, Blue Bird is also experiencing cost inflation and supply chain constraints, which could potentially impact gross margins. Despite these challenges, the company remains optimistic about the future, expecting revenue growth and higher adjusted EBITDA in the coming years. These are recent developments in the company's performance and outlook.
InvestingPro Insights
Amid the recent insider trading activity by Blue Bird Corp's (NASDAQ:BLBD) CEO, Phil Horlock, the company's financial health and market performance show interesting trends. With a market capitalization of $1.6 billion and a P/E ratio of 15.91, Blue Bird Corp stands out with a significant year-to-date price total return of 81.6% and an even more impressive one-year price total return of 131.38%. These robust returns highlight the company's strong market performance over the past year.
An InvestingPro Tip that aligns with this performance is the fact that analysts predict the company will be profitable this year, which may have contributed to the stock's high return. Additionally, the company's revenue growth in the last twelve months as of Q3 2024 stands at 19.53%, indicating a healthy expansion in its financials. This is consistent with another InvestingPro Tip that notes three analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's earning potential.
For investors seeking a deeper dive into Blue Bird Corp's prospects, there are 11 additional InvestingPro Tips available, which provide a comprehensive analysis of the company's performance and future potential. These tips, accessible through InvestingPro's dedicated product page for Blue Bird Corp, can offer valuable insights into investment decisions.
While the CEO's recent stock sales have captured attention, the broader financial metrics and analysts' optimism provide a more nuanced picture of Blue Bird Corp's standing in the automotive manufacturing industry.
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