Craig M. Hurlbert, the Chief Executive Officer of Local Bounti Corporation (NYSE:LOCL), has recently increased his stake in the company by purchasing additional shares. The insider buying comes as the stock shows significant momentum, posting a 37.5% gain over the past week, though InvestingPro data indicates the company faces operational challenges with weak financial health scores. According to a recent SEC filing, Hurlbert acquired 3,250 shares of Local Bounti's common stock on December 19, at a weighted average price of $1.812 per share. This transaction, valued at approximately $5,889, was executed in multiple trades at prices ranging from $1.765 to $1.8411. The micro-cap company, currently valued at $15.2 million, has shown strong revenue growth of 27.8% over the last twelve months despite facing significant cash burn challenges.
Following this transaction, Hurlbert now directly owns a total of 314,823 shares. Additionally, he holds indirect ownership of 1,177,386 shares through Wheat Wind Farms, LLC, where he serves as Member-Manager. Hurlbert retains sole voting and dispositive power over these shares, although he disclaims beneficial ownership except to the extent of his pecuniary interest. For deeper insights into LOCL's financial health and additional analysis, including 16 key ProTips, access the comprehensive research report available on InvestingPro.
In other recent news, Local Bounti Corporation reported significant developments in its operations and financial performance. The company announced a supply agreement with a major multinational retailer, further expanding its commercial presence. This deal involves 13 distribution centers and will be fulfilled from Local Bounti's facilities in California and Texas.
Local Bounti reported a 50% increase in sales year-over-year, reaching $10.2 million, during its third-quarter earnings call. However, due to a strategic shift towards high-value specialty products, the company anticipates achieving positive adjusted EBITDA by the second quarter of 2025. The completion of the Montana facility's transition to commercial production has contributed to improved operational efficiency.
The company also expanded its customer base, securing over 180 Brookshire Grocery locations and agreements with Sam's Club. Projected revenues for the fourth quarter of 2024 are expected to be around $11 million, a 67% year-over-year increase. Alongside these developments, Local Bounti is in discussions with potential capital partners to secure financing after solidifying customer needs and facility designs. These are some of the recent developments in Local Bounti's strategic transition.
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