PHOENIX—Bradley Lee Soultz, the Chief Executive Officer of WillScot (NASDAQ:WSC) Holdings Corp (NASDAQ:WSC), recently acquired 5,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were purchased at a weighted average price of approximately $35.41, totaling $177,037.
Additionally, Soultz transferred 5,000 shares to the Ellen M. Soultz Irrevocable Trust, a transaction that did not involve any monetary consideration. This transfer reflects a change in the form of beneficial ownership without altering Soultz's pecuniary interest in the shares. Following these transactions, Soultz directly holds 139,686 shares of WillScot Holdings.
The company's stock is traded on the NASDAQ under the ticker symbol WSC.
In other recent news, WillScot Corporation reported record adjusted EBITDA margins of 44.4% in its Q3 2024 earnings call. Despite a slight revenue dip to $601 million, the company demonstrated a 13% year-over-year increase in adjusted free cash flow per share, reaching $3.12. Amid a challenging market, WillScot continues to focus on operational optimization and portfolio expansion. The company has also announced plans for an Investor Day in the first half of 2025 to discuss growth strategies.
WillScot's performance comes amidst a decrease in storage leasing revenues and a cautious outlook for the year's end. However, the company has managed to reduce variable costs by over $20 million, aiding margin expansion. Furthermore, the company has increased its share repurchase authorization to $1 billion and maintains significant liquidity, with $1.7 billion available in their revolver.
These recent developments underline WillScot's commitment to a capital allocation strategy, including share repurchases, and its aim for modest growth in 2025. The company's adjusted EBITDA guidance for 2024 is revised to a midpoint of $1.60 billion. Despite some bearish highlights such as a decline in non-residential construction square footage and storage leasing revenues, WillScot remains focused on its growth strategies and operational optimization.
InvestingPro Insights
The recent insider purchase by CEO Bradley Lee Soultz aligns with WillScot Holdings Corp's (NASDAQ:WSC) broader strategy of shareholder value creation. According to InvestingPro data, the company has been aggressively buying back shares, which is often seen as a sign of management's confidence in the company's future prospects.
Despite the recent stock purchase, WillScot's shares have taken a significant hit over the last week, with a 10.74% decline in price total return. This recent dip has brought the stock closer to its 52-week low, currently trading at 67.06% of its 52-week high. This context makes the CEO's purchase particularly noteworthy, as it may signal his belief that the stock is undervalued.
WillScot boasts impressive gross profit margins, with the latest data showing a gross profit margin of 54.4% for the last twelve months as of Q3 2024. This strong profitability metric, combined with the company's market cap of $6.45 billion, suggests a robust financial position despite recent market volatility.
InvestingPro Tips highlight that while WillScot is trading at a high earnings multiple, analysts predict the company will be profitable this year. This forecast, coupled with the company's strong return over the last five years, may provide some reassurance to investors considering the recent stock price decline.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for WillScot Holdings Corp, providing a deeper dive into the company's financial health and market position.
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