In a recent transaction, Joshua Horowitz, a director at Limbach Holdings, Inc. (NASDAQ:LMB), sold 7,000 shares of the company's common stock, totaling approximately $399,494. The sale was executed at a weighted average price of $57.07 per share, with individual transactions ranging from $56.87 to $57.44 per share.
The transaction was reported in a Form 4 filing with the Securities and Exchange Commission (SEC), dated June 14, 2024. Following the sale, Palm Global Small Cap Master Fund LP, which is associated with Horowitz, holds 249,672 shares of Limbach Holdings. The filing indicated that the shares sold were indirectly owned by Palm Global Small Cap Master Fund LP, with Palm Management (US) LLC acting as the investment manager.
According to the SEC filing, Palm Management (US) LLC and Mr. Horowitz may be deemed to have beneficial ownership of the shares owned by Palm Global due to their respective positions within the company. However, both parties have expressly disclaimed beneficial ownership of the shares, except to the extent of their pecuniary interest.
The Form 4 filing provides transparency into the trading activities of company insiders, offering investors insight into executive confidence and actions within Limbach Holdings. The disclosed sale by Director Horowitz is part of the regular reporting required by SEC regulations for individuals in key company roles.
In other recent news, Limbach Holdings has been making strategic moves to enhance its growth trajectory. The company has reported an impressive 18.5% growth in gross profit for the first quarter of 2024, with a significant strategic shift towards Owner Direct Relationships (ODR). The ODR segment now constitutes 62.4% of total revenue, emphasizing this strategy's importance in the company's growth plan. Additionally, the company's net income saw a substantial increase of 153.5%, aided by a $2.4 million tax benefit, and adjusted EBITDA rose by 35.4% to $11.8 million.
The company has also expanded its board with the appointment of industry veteran David Gaboury, whose leadership and operational experience are expected to contribute to Limbach's strategy and growth. The reshuffle follows the retirement of Norbert W. Young from the board, with Joshua S. Horowitz taking over as the new Chairman.
In other developments, Limbach has invested $4 million in portable HVAC rental equipment and reported a 77.5% increase in free cash flow to $11.8 million. The company anticipates that ODR will represent 65% to 70% of total revenue for 2024 and has revised its adjusted EBITDA guidance upwards to between $51 million and $55 million for the year. These recent developments underscore Limbach Holdings' commitment to its strategic shift and growth trajectory.
InvestingPro Insights
Limbach Holdings, Inc. (NASDAQ:LMB) has demonstrated a robust financial position according to recent InvestingPro data. The company's market capitalization stands at a solid $668.3M (NYSE:MMM), and it is trading at a forward-looking P/E ratio of 24.58, which adjusts slightly to 24.34 when considering the last twelve months as of Q1 2024. This valuation is complemented by a PEG ratio of 0.26 for the same period, indicating a potential undervaluation relative to near-term earnings growth expectations.
InvestingPro Tips suggest that Limbach Holdings holds more cash than debt on its balance sheet, which is a strong indicator of financial health and risk management. Additionally, the company's cash flows can sufficiently cover its interest payments, providing further evidence of its solid financial footing. These factors are particularly relevant for investors analyzing the insider selling activity, as they provide context to the company's overall financial stability.
With regard to stock performance, Limbach Holdings has seen a significant 143.9% return over the past year, and an impressive return of 36.29% over the last three months. These metrics not only highlight the company's strong market performance but also may influence investor perception regarding the timing and implications of insider transactions.
For investors seeking additional insights, there are more InvestingPro Tips available, which can be accessed through the platform's dedicated page for Limbach Holdings at https://www.investing.com/pro/LMB. To enhance your investment strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 13 additional tips listed in InvestingPro for Limbach Holdings, which could provide deeper analysis and inform investment decisions.
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