DENVER—Michael Stock, the Chief Financial Officer of Liberty Energy Inc. (NYSE:LBRT), recently sold 5,000 shares of the company's Class A common stock, according to a regulatory filing. The shares were sold at a price of $18.45 each, amounting to a total transaction value of $92,250.
Following this sale, Stock retains ownership of 720,207 shares in the company. The transaction was conducted under a pre-established Rule 10b5-1 trading plan, which Stock adopted in December 2023, allowing for sales to begin in March 2024.
In other recent news, Liberty Oilfield Services (NYSE:LBRT) reported a solid third quarter for 2024, with revenues hitting $1.1 billion and an adjusted EBITDA of $248 million. Despite market pressures, the company increased its quarterly cash dividend by 14% to $0.08 per share and spent $39 million on share repurchases. Yet, analysts at Stifel, RBC Capital Markets, and Citi have revised their price targets and ratings for Liberty Oilfield Services following the company's recent financial performance. Stifel maintained a Buy rating but lowered its price target to $25 from $26, while RBC Capital Markets kept an Outperform rating but reduced its target to $23, and Citi downgraded the stock from Buy to Neutral with a target price of $19. These adjustments were made in light of Liberty's lower than expected EBITDA and less optimistic future projections. As for 2025, Liberty Energy executives anticipate increased completions activity and healthy free cash flow generation. They project Q4 capital expenditures to be around $200 million and forecast 2025 capital expenditures at approximately $650 million. These are among the recent developments surrounding Liberty Oilfield Services.
InvestingPro Insights
While Michael Stock's recent sale of Liberty Energy Inc. (NYSE:LBRT) shares may raise eyebrows, it's important to consider the broader financial picture of the company. According to InvestingPro data, Liberty Energy boasts a market capitalization of $2.93 billion and a price-to-earnings ratio of 8.44, suggesting the stock may be undervalued relative to its earnings.
Despite the CFO's sale, there are positive indicators for the company. An InvestingPro Tip highlights that Liberty Energy has raised its dividend for three consecutive years, demonstrating a commitment to shareholder returns. This is further supported by the company's current dividend yield of 1.78% and an impressive dividend growth of 60% over the last twelve months.
Another InvestingPro Tip notes that Liberty Energy operates with a moderate level of debt, which could provide financial flexibility in the cyclical energy services sector. This prudent financial management is reflected in the company's strong profitability, with a gross profit of $1.21 billion and an operating income of $494.64 million over the last twelve months.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 6 more tips for Liberty Energy. These additional tips could provide valuable context for understanding the company's financial health and future prospects beyond the recent insider transaction.
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