Quest Resource (NASDAQ:QRHC) Holding Corp (NASDAQ:QRHC) President and CEO S. Ray Hatch has recently increased his stake in the company by purchasing additional shares. On August 20, 2024, Hatch acquired 2,500 shares of Quest Resource common stock at a price of $8.0745 per share, totaling an investment of $20,186.
This transaction has bolstered Hatch's direct ownership in the company to 41,332 shares, according to the latest filing. The purchase reflects the CEO's continued confidence in the waste management company's future prospects.
Quest Resource Holding Corp, with a history of name changes, currently operates within the refuse systems industry and is incorporated in Nevada. Hatch's role as both President and CEO places him at the helm of the company's strategic direction and operational execution.
Investors often monitor insider transactions such as these for insights into executive sentiment regarding their company's performance and valuation. Hatch's purchase is a direct transaction, indicating personal ownership and potential alignment with shareholder interests.
It should be noted that the disclosed holdings also include 85,367 deferred stock units granted under the company's 2012 Incentive Compensation Plan. These units represent a long-term investment in the company's success by the CEO and are not part of the recent purchase.
The stock transaction comes amid the company's ongoing efforts to navigate the complexities of the energy and transportation sector, with Quest Resource Holding Corp's business address located in The Colony, Texas. Investors and market watchers will likely be keeping a close eye on the company's performance and any further insider transactions that may signal executive confidence or concern.
In other recent news, Quest Resource Holding Corporation has announced a Long-Term Incentive Plan (2024 LTIP) for its executive officers and key personnel, aiming to align leadership and shareholder interests. The plan, approved by the Compensation Committee, allows for the granting of performance stock units (PSUs) that are convertible into common stock based on the achievement of certain company performance metrics. The target payout date for the PSUs is March 15, 2027. In conjunction with the LTIP's approval, PSUs were granted to three key executives: S. Ray Hatch, David P. Sweitzer, and Brett W. Johnston.
In financial developments, Quest Resource reported strong EBITDA for the second consecutive quarter, exceeding $5 million, despite a 2% year-over-year dip in revenue, totaling $73.1 million. The company also highlighted its extended debt maturity and increased borrowing capacity with PNC Bank. These recent developments come as Quest Resource continues to implement efficiency initiatives, including Accounts Payable (AP) automation, aimed at improving customer service and reducing costs. The company remains optimistic about achieving continued double-digit growth and expects to reach 80-90% zero-touch invoice processing in the near term.
InvestingPro Insights
In light of the recent insider trading activity at Quest Resource Holding Corp (NASDAQ:QRHC), where President and CEO S. Ray Hatch has increased his stake in the company, various metrics and analysis from InvestingPro can offer additional context to investors. The company's market capitalization stands at approximately $165.92 million, reflecting its size and relevance within the refuse systems industry. Despite a challenging economic environment, Quest Resource Holding Corp has maintained a gross profit margin of 18.03% over the last twelve months as of Q2 2024, indicating its ability to manage costs effectively.
InvestingPro Tips suggest that while the company is not currently profitable, with a negative P/E ratio of -25.33, analysts predict that net income is expected to grow this year, which could signal a turnaround for the company's financial health. Additionally, the company's liquid assets exceed its short-term obligations, providing it with a cushion to navigate potential market volatility.
However, two analysts have revised their earnings estimates downwards for the upcoming period, which may be a point of consideration for investors. Moreover, with the company trading at a high EBIT valuation multiple and not paying dividends to shareholders, investors may need to rely on capital gains for returns. It's also notable that the stock is trading at 75.12% of its 52-week high, with a previous close price of $8.11.
For those interested in a deeper dive into the company's financials and future outlook, InvestingPro offers additional tips and analysis, with 8 more InvestingPro Tips available at: https://www.investing.com/pro/QRHC.
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