Brian Anthony Leveille, a member of the 10% owner group at Atlas (NYSE:) Energy Solutions Inc. (NYSE:AESI), recently sold 10,000 shares of the company’s common stock. The transaction, which took place on October 14, 2024, was executed at a price of $20.50 per share, resulting in a total sale value of $205,000. Following this transaction, Leveille holds 542,010 shares in the company.
In other recent news, Atlas Energy Solutions has seen a variety of developments. The company’s Q2 2024 revenues surged by 49% to $288 million, alongside an adjusted EBITDA of $72 million. Additionally, Atlas Energy announced a dividend increase to $0.23 per share. On the flipside, Citi analyst Scott Gruber has adjusted the price target for the company, reducing it to $23.00 from $25.00, while maintaining a Buy rating. This revision is in response to increased operating costs and industry challenges facing Atlas Energy.
Analysts from Goldman Sachs and RBC Capital Markets also maintain a positive outlook on the company, despite recent operational setbacks. Goldman Sachs maintains a Buy rating with a $23 price target, citing the company’s cost-effective operations and projected free cash flow surge in 2025. RBC Capital Markets, while reducing its price target for Atlas Energy to $26.00, maintains an Outperform rating, highlighting the company’s strong growth potential and robust profit margins.
Atlas Energy’s board has expanded from eight to nine members, with CEO John Turner appointed to the new seat. His industry experience and tenure with Atlas Energy Solutions are anticipated to provide valuable insights. Despite current challenges, the company looks forward to strong EBITDA growth in 2025, with a forecast of around $461 million. These are recent developments that investors should keep an eye on.
InvestingPro Insights
The recent insider sale by Brian Anthony Leveille comes at a time when Atlas Energy Solutions Inc. (NYSE:AESI) is experiencing mixed market signals. According to InvestingPro data, the company’s market capitalization stands at $2.2 billion, with a P/E ratio of 17.22, suggesting a moderate valuation relative to earnings.
Despite the insider sale, AESI has shown strong revenue growth, with a 77.71% increase in quarterly revenue as of Q2 2024. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. The company’s profitability is also noteworthy, with a gross profit margin of 43.1% and an operating income margin of 26.22% for the last twelve months.
Investors should note that AESI offers a substantial dividend yield of 5.11%, with a impressive dividend growth rate of 70% over the last twelve months. This generous dividend policy may be attractive to income-focused investors, especially considering that the company operates with a moderate level of debt, as highlighted by another InvestingPro Tip.
However, it’s worth mentioning that the stock has taken a hit recently, with a 7.71% decline in the past week. This short-term volatility could be a factor in the insider’s decision to sell shares. Nevertheless, the company’s liquid assets exceed short-term obligations, suggesting a stable financial position.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 7 more InvestingPro Tips available for AESI, providing a deeper understanding of the company’s financial health and market position.
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