In a recent transaction, Matthew E. Rubel, the Executive Chairman of the Board at Holley Inc. (NYSE:HLLY), purchased shares of the company's stock, signaling a vote of confidence in the auto parts manufacturer's future prospects. On June 12, 2024, Rubel acquired 14,493 shares at a weighted average price of $3.39 per share, totaling approximately $49,131.
The purchase was made at prices ranging from $3.38 to $3.39, according to details provided in the footnote of the transaction. Rubel, who holds multiple roles within the company as both an officer and a director, now owns a significant number of shares, which underscores his commitment to Holley Inc. and its growth trajectory.
Following the transaction, Rubel's direct holdings in Holley Inc. have increased to 169,979 shares. Additionally, the SEC filing noted indirect ownership through various family trusts, with the Rubel Family Management Trust holding 493,632 shares. Matthew Rubel Family Annual Exclusion Trusts for Joshua, Jeffrey, and Michael Rubel each hold 134,831 shares. These indirect holdings are managed with shared voting and investment control, and Rubel disclaims beneficial ownership except to the extent of his pecuniary interest.
Investors often monitor insider transactions such as these for insights into executive sentiment about the company's performance and outlook. Rubel's recent acquisition of Holley Inc. shares may be interpreted by the market as a positive indicator, given his leadership position and intimate knowledge of the company.
Holley Inc., headquartered in Bowling Green, Kentucky, specializes in the design, manufacture, and marketing of high-performance automotive aftermarket products. The company's commitment to innovation and quality has made it a preferred choice among car enthusiasts and professionals in the motor vehicle parts and accessories industry.
In other recent news, Holley Inc. reported its first quarter 2024 financial results, which showed a decrease in sales, but a strong hold on margins and a significant reduction in debt. Despite the sales decline, the company maintained robust margins with a gross margin of 32.8% and an adjusted gross margin of 38.9%. The company also reduced its debt by $15 million, aiming to exit the covenant relief period by the end of Q2.
Holley is focusing on driving organic growth through new product introductions in the truck, off-road, and UTV segments. The company also reaffirmed its full-year outlook, projecting net sales between $640 million to $680 million, and adjusted EBITDA between $125 million to $145 million.
For Q2, Holley anticipates net sales to be in the range of $165 million to $175 million and adjusted EBITDA between $34 million to $40 million. Despite facing increased SG&A expenses and sales headwinds, Holley managed to deliver strong adjusted EBITDA. The company introduced a new Bluetooth connectivity kit for the Sniper 2 product, which is showing strong performance in its market segment. These are among the recent developments for Holley.
InvestingPro Insights
As the Executive Chairman of Holley Inc. (NYSE:HLLY) demonstrates his belief in the company with a recent stock purchase, investors seeking a deeper understanding of Holley's financial health can turn to InvestingPro for real-time data and insights. Notably, Holley's market capitalization stands at a modest $378.89M, reflecting its position within the auto parts manufacturing sector. The company's P/E ratio, a key indicator of market expectations of growth and profitability, is currently at 20.16, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 18.42, suggesting a potentially more favorable valuation compared to historical figures.
Despite recent challenges indicated by a revenue decline of -2.18% over the last twelve months as of Q1 2024, Holley maintains a robust gross profit margin of 37.21%, which speaks to the effectiveness of its manufacturing and pricing strategies. Additionally, the company's operating income margin stands at 12.42%, highlighting its ability to manage operational costs effectively.
Turning to InvestingPro Tips, it's worth noting that Holley's stock is currently trading near its 52-week low, which may catch the attention of value investors looking for potential entry points. Moreover, the stock's Relative Strength Index (RSI) suggests that it is in oversold territory, potentially indicating an upcoming correction or rebound in its share price. For those considering an investment in Holley, these insights could be crucial in making an informed decision. For more detailed analysis and additional tips, including the company's strong free cash flow yield and the fact that its liquid assets exceed short-term obligations, visit https://www.investing.com/pro/HLLY.
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