David Richard Gaboury, a director at Limbach Holdings, Inc. (NASDAQ:LMB), has purchased additional shares of the company, according to a recent filing with the Securities and Exchange Commission. On September 12, Gaboury acquired 340 shares of common stock at a price of $72.70 per share, totaling an investment of $24,718.
The transaction has bolstered Gaboury's ownership in the construction and specialty trade contractors firm to 1,540 shares. This move reflects a vote of confidence from the director in the company's future prospects.
Limbach Holdings, headquartered in Warrendale, Pennsylvania, operates within the real estate and construction sector and is known for providing building infrastructure and energy services. The acquisition of shares by a key insider often signals to investors that the company's leadership is optimistic about the firm's value and growth potential.
Investors and market watchers closely monitor insider transactions as they can provide insights into the company's performance and strategic direction. The recent purchase by Gaboury is a notable development for current and potential shareholders of Limbach Holdings.
In other recent news, Limbach Holdings, Inc. has acquired Kent Island Mechanical (KIM) for an initial purchase price of $15 million. This strategic move is expected to enhance Limbach's service offerings in the Greater Washington, D.C. metro area and contribute approximately $30 million in revenue and over $4 million in EBITDA annually starting in 2025.
Limbach has also reported a significant shift in its operational strategy, leading to robust financial results for the second quarter of 2024. The company's focus on maintenance, repairs, and upgrades of existing buildings resulted in a substantial increase in its owner direct revenue (ODR), now comprising 67.7% of total revenue. This strategic shift has contributed to a record gross margin of 27.4% and a rise in net income and cash flow.
The company's full-year adjusted EBITDA is projected to be between $55 million and $58 million. Despite a decrease in GCR gross profit due to lower revenue, ODR gross profit accounted for 75.7% of total gross profit, a significant increase from the previous year. These recent developments suggest a period of strong financial performance and significant advancements in Limbach Holdings' service offerings and market presence.
InvestingPro Insights
As Limbach Holdings, Inc. (NASDAQ:LMB) garners attention with insider buying activity, InvestingPro data and tips offer a deeper look into the company's financial health and market performance. A director's investment is a positive signal, and Limbach Holdings' current financial position supports this optimism. The company's market capitalization stands at $813.02 million, indicating a substantial presence in the construction and specialty trade contractors sector.
InvestingPro Tips suggest that Limbach Holdings holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability. Additionally, the company is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 30.72 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 28.3. This could indicate that the stock is undervalued given its earnings potential, making it an attractive option for value investors.
From a performance standpoint, Limbach Holdings has experienced a significant return over the last week, with a price total return of 16.71%. This momentum is also reflected over longer periods, with a one-year price total return of 116.27%. Moreover, the company is trading near its 52-week high, at 98.12% of the peak value, which aligns with the director's recent share purchase and suggests a strong market sentiment.
For investors seeking additional insights, there are more InvestingPro Tips available, providing a comprehensive analysis of Limbach Holdings' financial and market performance. These tips can be accessed through the dedicated InvestingPro platform for Limbach Holdings at https://www.investing.com/pro/LMB.
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