MasTec Inc (NYSE:MTZ) COO, Robert Apple (NASDAQ:AAPL), has recently sold a significant portion of his holdings in the company, according to the latest SEC filings. On September 20, 2024, Apple sold a total of 20,000 shares of MasTec's common stock, with transactions amounting to over $2.5 million.
The sales were executed in two separate transactions, with prices ranging from $125.04 to $127.50 per share. The first batch of 10,000 shares was sold at a weighted average price of $125.04. The second batch, also consisting of 10,000 shares, was sold at $127.50 per share. Following these transactions, Apple's direct holdings in MasTec were reduced, though he remains a significant shareholder with 217,202 shares as indicated in the SEC filing.
It is noted in the footnotes of the filing that these sales are part of a systematic plan by Mr. Apple to reduce his portfolio concentration in MasTec shares. This plan, known as a 10b5-1 plan, allows company insiders to set up a predetermined schedule for selling stocks to avoid accusations of insider trading. The 20,000 shares sold represent only 8% of Mr. Apple's ownership in the company.
Additionally, the filing reveals that part of Mr. Apple's holdings include shares that are indirectly owned through The Apple Family Trust, of which he and his wife are trustees and beneficiaries.
Investors closely monitor insider transactions as they can provide valuable insights into company executives' confidence in the financial health and future prospects of their organizations. The sale of a substantial amount of stock by a high-ranking executive such as the COO of MasTec is likely to draw attention within the investment community.
MasTec, a leading infrastructure construction company headquartered in Coral Gables, Florida, has not made any official statement regarding these transactions at the time of reporting.
In other recent news, infrastructure construction firm MasTec reported strong second-quarter earnings, surpassing expectations with revenues reaching $3 billion, an adjusted EBITDA of $268 million, and adjusted earnings per share of $0.96. The company's backlog also saw a significant increase of $500 million from the previous quarter, reaching $13.3 billion. These robust results were largely driven by solid margin performance in the Oil & Gas and Communications sectors.
Stifel and Baird analysts have adjusted their price targets for MasTec, with Stifel raising its target to $121 and maintaining a Buy rating, while Baird lifted its target to $120, maintaining a Neutral rating. Both firms acknowledged MasTec's solid fundamentals and expressed a positive outlook for the company's revenue growth into 2025.
In addition to strong earnings, MasTec reported a significant year-over-year increase in total orders, bolstered by a major transmission project expected to contribute to annual revenue through 2028. The company also highlighted several growth drivers, including an improving pipeline outlook, a new project win with AT&T, and robust orders in the clean energy sector. These are among the recent developments that have put MasTec in the spotlight.
InvestingPro Insights
As MasTec Inc (NYSE:MTZ) experiences shifts in insider holdings, with COO Robert Apple's recent sale of shares, investors may be seeking additional context to understand the company's financial standing and future potential. According to InvestingPro data, MasTec currently holds a market capitalization of approximately $9.7 billion. The company's revenue growth over the last twelve months leading up to Q2 2024 has been reported at 10.97%, indicating a steady increase in its financial performance. Despite this growth, the company's gross profit margin stands at 12.3%, which may be considered modest in the industry.
InvestingPro Tips suggest that analysts are optimistic about MasTec's future, with net income expected to grow this year and seven analysts having revised their earnings upwards for the upcoming period. This could signal confidence in the company's ability to expand its profitability. On the flip side, MasTec's stock is currently trading at a high earnings multiple with a P/E ratio of 558.65, which could suggest that the stock is priced optimistically relative to its earnings. Additionally, the company's stock appears to be in overbought territory according to the Relative Strength Index (RSI), which might indicate a potential pullback in the near term.
For investors looking for a deeper dive into MasTec's performance and insider transactions, InvestingPro offers a broader range of tips and metrics. There are a total of 15 InvestingPro Tips available for MasTec, providing a more comprehensive analysis for those considering investment decisions. For a full list of insights and to explore the advanced analytics, visit: https://www.investing.com/pro/MTZ.
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