James Lillie, a director at APi Group Corp (NYSE:APG), recently sold a significant portion of the company's common stock. According to a recent SEC filing, Lillie sold a total of 59,924 shares on November 13, 2024. The shares were sold at a weighted average price of $36.88, resulting in a total transaction value of approximately $2.2 million.
The sales were executed under a Rule 10b5-1 trading plan, which was adopted by JTOO LLC and James Lillie in August 2024. Following these transactions, Lillie holds 1,096,203 shares directly and 5,005,411 shares indirectly through JTOO LLC. Additionally, Lillie has interests in shares held by Mariposa Acquisition IV, LLC.
Investors often watch insider transactions like these closely, as they can provide insights into the executive's view on the company's future performance.
In other recent news, APi Group Corporation reported a year-over-year revenue increase of 2.4% to $1.83 billion in its Third Quarter 2024 earnings call. The growth was primarily driven by the Safety Services segment. The company also reported a 9.4% rise in adjusted EBITDA and is on track to achieve a 13% adjusted EBITDA margin by 2025. Despite expected project delays impacting revenues by $150 million, APi Group anticipates continued growth and margin improvement.
The company's adjusted gross margin rose to 31%, and adjusted diluted earnings per share grew to $0.51. CEO Russ Becker emphasized the company's strong M&A pipeline and disciplined project selection. These recent developments indicate a positive trajectory for APi Group, with a focus on achieving its 2025 targets.
InvestingPro Insights
To provide additional context to James Lillie's recent stock sale at APi Group Corp (NYSE:APG), let's examine some key financial metrics and insights from InvestingPro.
APi Group Corp currently has a market capitalization of $9.94 billion, indicating it's a substantial player in its industry. The company's revenue for the last twelve months as of Q3 2024 stood at $6.92 billion, with a modest revenue growth of 0.64% over the same period.
One InvestingPro Tip highlights that APi Group's stock price movements are quite volatile. This volatility could explain why insiders like James Lillie might choose to sell shares under a pre-planned trading arrangement, as it allows for more predictable execution of trades.
Another relevant InvestingPro Tip notes that while APi Group was not profitable over the last twelve months, analysts predict the company will be profitable this year. This expectation of a turnaround in profitability could be a factor influencing investor sentiment and insider trading decisions.
The company's Price to Book ratio stands at 3.38, which may indicate that the stock is trading at a premium compared to its book value. This could potentially justify Lillie's decision to sell some shares if he believes the current market price represents a good value proposition.
It's worth noting that APi Group does not pay a dividend to shareholders, which means that any returns for investors are primarily through stock price appreciation. This fact, combined with the company's strong return over the last five years (another InvestingPro Tip), suggests that the stock has been rewarding for long-term holders despite its recent volatility.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for APi Group, which could provide further context to the company's financial health and future prospects.
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