In a recent transaction, entities associated with Wynnefield Capital have collectively purchased $212,111 worth of shares in Quest Resource (NASDAQ:QRHC) Holding Corp (NASDAQ:QRHC). The acquisition, which took place on March 13, 2024, involved the purchase of shares at a price of $6.9372 each.
The filing with the Securities and Exchange Commission revealed that the shares were bought by multiple reporting owners, including Wynnefield Partners Small Cap Value LP I and Wynnefield Small Cap Value Offshore Fund Ltd, among others. These entities are related to Wynnefield Capital, a firm known for its investments in small-cap value opportunities.
This transaction indicates a continued interest and confidence from Wynnefield-related entities in Quest Resource Holding Corp, a company that operates in the refuse systems industry. The purchase adds to the various Wynnefield entities' already substantial holdings in the company, further cementing their status as significant shareholders.
Investors and market watchers often keep a close eye on such filings to gauge insider sentiment and potential future moves by major stakeholders. The acquisition of shares by Wynnefield entities may be interpreted as a positive signal regarding the company's prospects, although it should be noted that the reporting owners have disclaimed beneficial ownership of the securities except to the extent of their pecuniary interest.
Quest Resource Holding Corp, listed on NASDAQ, is involved in environmentally focused solutions, providing services that ensure sustainability in waste management and recycling. The company's stock performance and corporate developments are closely monitored by investors interested in eco-friendly business practices and sustainable growth.
InvestingPro Insights
Following the recent share acquisition by Wynnefield Capital entities, Quest Resource Holding Corp (NASDAQ:QRHC) presents a mixed financial landscape according to InvestingPro data. The company's market capitalization stands at a modest $142.01 million, reflecting its position in the small-cap market, where Wynnefield Capital typically seeks value. Despite a challenging profitability profile, with a negative P/E ratio over the last twelve months at -24.06, Quest Resource has demonstrated a revenue growth of 11.39% in Q4 2023, indicating potential for future financial improvements.
InvestingPro Tips suggest that while Quest Resource Holding Corp may face difficulties in making interest payments on its debt, analysts are optimistic about the company's net income growth this year. Moreover, the company is expected to turn profitable within the year, an outlook that might have influenced Wynnefield's recent investment decision. However, it is important to note that Quest Resource does not pay dividends, which could be a consideration for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional insights, including a total of 7 InvestingPro Tips for QRHC, which could further inform investment decisions. Utilize the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of expert tips and real-time metrics.
Investors considering QRHC will note the company's strong return over the last five years, alongside its recent price performance, which is at 88.82% of its 52-week high. With the next earnings date slated for May 13, 2024, market participants will be watching closely to see if the company's strategies align with the positive predictions and whether Wynnefield Capital's investment will yield the expected value.
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