Mister Car Wash , Inc. (NYSE:MCW) reported that its Chief Financial Officer, Jedidiah Marc Gold, executed several stock transactions on November 11, 2024. Gold sold 66,122 shares of common stock at prices ranging from $8.50 to $8.55, resulting in a total transaction value of approximately $562,698.
In addition to the sale, Gold acquired 66,122 shares through the exercise of stock options at a price of $2.12 per share. Following these transactions, Gold holds 44,854 shares directly.
In other recent news, Mister Car Wash reported steady growth in its third-quarter results, reflecting a 7% increase in sales and a 2.9% rise in comparable store sales. The company's adjusted EBITDA also grew by 10%, reaching $79 million. Despite challenges posed by recent hurricanes, the company revised its full-year guidance upward, reflecting confidence in its business model. Key developments include a successful Titanium membership and a robust subscription model, which contributed to a 9% increase in Express revenue per member. The company also announced plans to open approximately 40 new stores next year. Furthermore, Mister Car Wash expects full-year net revenue to be between $988 million and $995 million, with adjusted net income projected between $114 million and $117 million. However, it is important to note that the company anticipates an increase in media spending in the fourth quarter, which may affect operating income and adjusted EBITDA margins.
InvestingPro Insights
Mister Car Wash's recent insider activity comes amid a period of strong stock performance and mixed financial indicators. According to InvestingPro data, MCW has seen a robust 32.06% price return over the past month and a 22.3% return over the last three months. This aligns with one of the InvestingPro Tips, which notes the company's "Strong return over the last month."
However, investors should be aware that the stock is currently trading at a high earnings multiple, with a P/E ratio of 35.02. This valuation metric suggests that the market has high growth expectations for the company, which may explain the recent insider selling activity by the CFO.
Despite the high valuation, Mister Car Wash has shown solid financial performance. The company's revenue for the last twelve months as of Q3 2024 stood at $973.7 million, with a revenue growth of 6.85%. Moreover, the company maintains a healthy gross profit margin of 31.14% and an operating income margin of 19.21%.
It's worth noting that while the company is profitable, with a diluted EPS of $0.22 for the last twelve months, it operates with a significant debt burden. This is highlighted by another InvestingPro Tip, which indicates that MCW's short-term obligations exceed its liquid assets.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Mister Car Wash, providing a deeper understanding of the company's financial health and market position.
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