Director of Cardinal Ethanol LLC, Robert Nathan Baker, has made a significant investment in the company, purchasing shares valued at a total of $675,750. The transactions, which took place on April 1st, involved the acquisition of Limited Liability Company Membership Units at prices ranging from $19,500 to $20,000 per unit.
Baker's purchase is noteworthy as it reflects a substantial commitment to the company, which operates within the industrial organic chemicals sector. The transactions resulted in Baker's increased ownership in Cardinal Ethanol, with the number of shares owned following the transactions totaling 1,946 units. Notably, the shares were acquired indirectly, with 950 units owned by Clark Family, LLC, where Baker serves as the representative on the Board of Directors, sharing investment and voting power with Stephen L. Clark. The remaining shares are held by the Robert N. Baker Trust.
Cardinal Ethanol LLC, which does not have a trading symbol as it is likely a private or smaller reporting company, is incorporated in Indiana and has its business operations centered around the industrial applications and services space. The company's fiscal year ends on September 30th.
Investors in Cardinal Ethanol may view Baker's purchase as a positive sign of a director's confidence in the company's prospects. Such insider transactions are often closely monitored by market participants for insights into a company's internal perspectives.
As per the SEC filing, the transactions were executed in accordance with federal securities laws, and the details were made public to ensure transparency for investors and stakeholders. The filing also included a signature from Robert N. Baker, dated March 27, 2024, confirming the accuracy of the reported information.
InvestingPro Insights
In light of the recent insider transactions at Cardinal Ethanol LLC, investors may find the following metrics and InvestingPro Tips particularly noteworthy. With a market capitalization of $118.47M, the company exhibits potential for growth, reflected in its 65.16% revenue growth over the last twelve months as of Q2 2023. This signals that Cardinal Ethanol is expanding its market presence in the industrial organic chemicals sector, which could be a driving factor behind Director Robert Nathan Baker's decision to increase his investment in the company.
However, the company's financial health raises some concerns. The adjusted P/E ratio for the last twelve months as of Q2 2023 stands at -14.13, indicating that the company was not profitable during this period. This aligns with one of the InvestingPro Tips, which points out that the company has not been profitable over the last twelve months. Additionally, the high Price / Book multiple of 24.85 suggests that the stock is trading at a premium relative to the company's book value, which could be indicative of investor optimism about future growth, despite current profitability challenges.
Moreover, the stock's recent performance shows a significant price volatility, with a 1-month price total return as of the 92nd day of 2024 showing a decrease of 22.22%. This aligns with another InvestingPro Tip that highlights the stock's tendency to trade with high price volatility. Investors may need to consider this aspect when evaluating the risk associated with their investment.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that can provide further insight into Cardinal Ethanol's financial stability and performance trends. By using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable tips and metrics.
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