In an intriguing financial move, NESCO Holdings LP executives recently offloaded a significant number of shares in Custom Truck One Source, Inc. (NYSE:CTOS), amounting to over $8 million. These transactions, which occurred on September 5, 2024, were publicly disclosed in a filing with the SEC. The shares were sold at an average price of $3.42, with individual sales ranging from $3.42 to $3.72. The total number of shares sold by the executives was 2,354,109, generating sales proceeds of approximately $8,051,052.
- Executive Sell-Off: Custom Truck One Source, known for its equipment rental and leasing services, has witnessed its executives engaging in active stock trading. While the recent filing indicates a substantial sell-off, specific details about the number of shares sold at various price points within the range are available upon request.
- Ownership Structure: Even after these transactions, NESCO Holdings LP and its related entities still hold a substantial amount of Custom Truck One Source stock. Notably, ECP Cardinal Holdings, LP, and NESCO Holdings, LP retain ownership of 4,088,426 and 19,296,453 shares, respectively. The ownership and control structure entails a network of entities and managers with interconnected relationships, detailed in the footnotes of the SEC filing.
- Financial Developments: Custom Truck One Source recently experienced notable shifts in its financial landscape. The company’s EBITDA of $80.1 million fell short of estimates, resulting in revised full-year guidance. Despite these challenges, sequential revenue growth and adjusted EBITDA growth were observed. Additionally, the company expanded its credit facility from $750 million to $950 million, bolstering its financial capabilities for operational and strategic endeavors.
- Analyst Insights: Financial firm Baird revised its outlook on Custom Truck One Source, adjusting the price target while maintaining an outperform rating. This adjustment was influenced by changes in backlog levels in the Truck & Equipment Sales segment. Furthermore, analysts from Oppenheimer and DA Davidson also modified their price targets due to recent earnings releases and challenges faced by the Transmission business.
Custom Truck One Source remains optimistic about the future, aiming for improvements in the latter half of the year and a focus on generating positive free cash flow for 2024. Investors should consider these recent developments alongside insider trading activity to gain a comprehensive understanding of the company’s current standing and potential trajectory.
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