Investors tracking insider transactions at NET Power Inc. (NYSE:NPWR) should note that 8 Rivers Capital, LLC and SK Inc., both beneficial owners of the company's shares, have recently sold a significant number of shares. The sales, which occurred on October 9 and 11, 2024, amounted to a total value of over $1.6 million.
The shares were sold at weighted average prices that varied slightly between the two dates. Specifically, the sales on October 9 were executed at an average price of $6.9477, with prices ranging from $6.90 to $7.04. On October 11, the average sale price was $6.9163, within a range of $6.90 to $7.00. These transactions were disclosed in a recent filing with the U.S. Securities and Exchange Commission.
8 Rivers Capital, holding approximately 91.4% of the equity in NPEH, LLC, which in turn made the stock sales, may be deemed a beneficial owner of the shares. However, 8 Rivers has disclaimed beneficial ownership of the securities except to the extent of its pecuniary interest. Similarly, SK Inc., which indirectly beneficially owns 100% of certain entities that collectively have a significant interest in 8 Rivers, has also disclaimed beneficial ownership of these securities, except for its pecuniary interest.
Following these transactions, the number of shares owned by NPEH, LLC has decreased, yet both 8 Rivers Capital and SK Inc. remain substantial shareholders of NET Power Inc. The company is known for its involvement in the electrical industrial apparatus sector and has been previously named Rice Acquisition Corp. II before its name change.
The signatures of Asheley Kinsey, Chief Financial Officer of 8 Rivers Capital, LLC, and Munhyuk Jang, Head of Corporate Management Department of SK Inc., were provided on the SEC filing, confirming the accuracy of the reported transactions.
Investors often monitor insider selling and buying as it can provide insights into a company's financial health and future prospects. The recent sales by 8 Rivers Capital and SK Inc. represent a notable change in their investment in NET Power Inc., and market participants may take this information into account when assessing the company's stock.
In other recent news, Net Power Inc. has made significant advancements in its utility-scale power plant project by entering a $90 million equipment deal with Baker Hughes Energy Services LLC. This agreement, which includes the procurement of specialized equipment and services, is a key move for the company's ongoing development of its power plant. The deal also outlines the acquisition of a turboexpander and other crucial process equipment, collectively known as KPEP.
Simultaneously, Net Power Inc. has been under the spotlight following Citi's decision to revise its price target for the company from $11.00 to $8.00, maintaining a neutral rating. This adjustment was made after a visit to Net Power's La Porte demonstration facility, where the complexities of the company's operations and an increase in perceived execution risk led to a reassessment of the cost of capital.
On the financial front, during Net Power's Q2 2024 earnings call, the company reported $609 million in cash investments and anticipated an increase in cash flow used in operations due to expansion. The company also confirmed that their first utility-scale plant, Project Permian, remains on schedule to start between the latter half of 2027 and the first half of 2028. These recent developments highlight Net Power Inc.'s strategic efforts to establish its presence in the energy sector.
InvestingPro Insights
The recent insider sales at NET Power Inc. (NYSE:NPWR) align with several key metrics and insights from InvestingPro. According to InvestingPro data, NPWR's stock price has fallen significantly over the last year, with a one-year price total return of -53.57% as of the latest available data. This downward trend is further emphasized by the stock trading near its 52-week low, with the current price at only 46.06% of its 52-week high.
InvestingPro Tips highlight that NPWR suffers from weak gross profit margins, which is reflected in the company's financials. The latest data shows a staggering gross profit margin of -710.08% for the last twelve months as of Q2 2024, indicating significant challenges in the company's core operations.
Despite these concerns, it's worth noting that NPWR holds more cash than debt on its balance sheet, which could provide some financial flexibility. Additionally, the company's liquid assets exceed short-term obligations, potentially offering a buffer against immediate financial pressures.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for NPWR, providing a deeper understanding of the company's financial position and market performance.
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