Centuri Holdings director Fehrman buys $330,000 in stock
In a recent transaction, William Fehrman, a director at Centuri Holdings, Inc. (NYSE:CTRI), has significantly increased his stake in the company. On July 31, Fehrman purchased 20,000 shares of common stock at a weighted average price range of $16.31 to $16.54, with the transaction totaling approximately $330,000.
This move by Fehrman demonstrates a notable vote of confidence in the transmission and distribution company, which is incorporated in Delaware and has its business office in Phoenix, AZ. Following the purchase, Fehrman now owns a total of 45,000 shares in Centuri Holdings, Inc.
In a related footnote, it was disclosed that the reported purchase price was a weighted average, suggesting that the transactions occurred at varying prices within the stated range. The company has committed to providing full details of the share quantities and specific prices if requested by the SEC, the issuer, or any security holder.
Additionally, it was revealed through a footnote that Fehrman had entered into a Transition Agreement with Centuri Holdings on July 12, 2024. Under the terms of this agreement, he agreed to forfeit all of his outstanding restricted stock units on July 31, 2024, the same day as the reported purchase.
Investors often monitor insider transactions such as these for insights into how company executives view the stock’s value and prospects. Fehrman’s acquisition of additional shares could be interpreted as a sign of his belief in the company’s future performance.
The transaction was filed with the SEC and signed on behalf of Fehrman by Jason S. Wilcock, as attorney-in-fact, on August 1, 2024.
In other recent news, Centuri Holdings has experienced significant changes in its earnings and revenue figures, as well as in its stock ratings by various analyst firms. Baird adjusted its price target for Centuri Holdings, maintaining an Outperform rating despite reducing the target from $30.00 to $19.00. This followed Centuri’s post-IPO earnings release which did not meet expectations and the unexpected departure of the company’s CEO. Wells Fargo reported a 16.6% revenue decline for Centuri, leading to a downward adjustment of the year’s revenue guidance to $2.5 to $2.7 billion.
UBS downgraded Centuri’s stock from Buy to Neutral and lowered the price target to $17.00 after three consecutive quarters of missed earnings expectations. This led UBS to revise its earnings forecast for Centuri to $293 million. Meanwhile, BofA Securities downgraded Centuri’s stock rating from Neutral to Underperform, following the announcement of CEO Bill Fehrman’s departure.
In contrast, Wells Fargo initiated coverage on Centuri, assigning an Overweight rating and setting a price target of $29.00. They recognized the company’s significant growth and expansion strategy. KeyBanc also initiated coverage on Centuri with a Sector Weight rating, emphasizing the company’s involvement in growing sectors such as Electric and Gas Transmission & Distribution, clean energy infrastructure, and 5G. These are the recent developments for Centuri Holdings.
InvestingPro Insights
Centuri Holdings, Inc. (NYSE:CTRI) has recently witnessed significant insider activity, with director William Fehrman increasing his stake in the company. This move aligns with the broader financial context of CTRI, as reflected by key metrics from InvestingPro. With a market capitalization of approximately $1.46 billion, the company’s financial health can be further dissected by considering its performance data.
One of the notable InvestingPro Data points is CTRI’s price-to-earnings (P/E) ratio, which currently stands at -6.71. This negative P/E ratio indicates that the company has reported a loss in the last twelve months as of Q2 2024. Despite this, the InvestingPro Tips suggest that net income is expected to grow this year, which could potentially turn the P/E ratio positive if the anticipated profitability materializes.
Moreover, the stock’s recent price movements provide additional context for Fehrman’s purchase. CTRI’s shares have experienced a significant decline over the past three months, with a price total return of -34.85%. This aligns with one of the InvestingPro Tips indicating that the stock is currently in oversold territory according to the Relative Strength Index (RSI), possibly presenting a buying opportunity that Fehrman has capitalized on.
Investors considering following the insider’s lead may find value in the 12 additional InvestingPro Tips available for CTRI, which offer a deeper analysis of the company’s financial landscape and stock performance. These tips include insights on earnings revisions, sales expectations, and the company’s profitability forecast for the current year, potentially influencing investment decisions.
It is also noteworthy that CTRI’s fair value is estimated at $16.6 according to InvestingPro, closely aligning with the recent transaction price range of $16.31 to $16.54, where Fehrman increased his holdings. This suggests that the stock may be trading at a fair market value, as perceived by both the director and financial analysts.
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