In a recent transaction, William H. Bartels, a director and major shareholder of SPAR Group, Inc. (NASDAQ:SGRP), has sold a significant portion of his holdings in the company. Bartels parted with 1,000,000 shares at a price of $1.80 each, totaling $1.8 million.
The sale took place on May 9, 2024, as per the terms of a repurchase agreement dated April 30, 2024, between Bartels and SPAR Group, Inc. The company's board of directors and audit committee had previously approved the agreement on May 3, 2024. According to the agreement, the sale price was set based on the closing market price on the day before the agreement date, which was April 29, 2024.
Following the transaction, Bartels still retains a substantial stake in the company with 4,709,837 shares. The sale is part of SPAR Group's 2024 Stock Repurchase Program, which was authorized by the board on March 28, 2024. Under this program, the company may repurchase up to 2.5 million shares of its common stock over a one-year period, either in the open market or through privately negotiated transactions.
It's worth noting that an adjustment was made to Bartels' holdings prior to this sale, reducing his beneficial ownership by 46,710 shares. This correction was made to address a discrepancy found during a review of his shareholdings, which was determined to be inadvertent and did not result in any violations of Section 16(b) of the Securities Exchange Act of 1934.
SPAR Group, Inc. specializes in business services and operates under the standard industrial classification code 7389. The company, incorporated in Delaware, has its business address in Auburn Hills, Michigan.
InvestingPro Insights
As SPAR Group, Inc. (NASDAQ:SGRP) navigates through its stock repurchase program, a closer look at the company's financial metrics and market performance provides investors with a broader context. With a market capitalization of $42.38 million and a relatively modest P/E ratio of 9.45 for the last twelve months as of Q4 2023, SPAR Group is trading at a valuation that suggests efficiency in earnings generation compared to its share price.
An InvestingPro Tip highlights that SGRP's liquid assets surpass its short-term obligations, indicating a healthy liquidity position that could support its operational needs and strategic initiatives, such as the stock repurchase program. Furthermore, the company has been profitable over the last twelve months, which is a positive sign for investors looking for stable earnings.
The stock has shown a remarkable return of 85.15% over the past year, and the trend has continued with a strong return of 68.93% in the last three months. This performance is particularly noteworthy for investors who track price momentum. Additionally, SPAR Group does not pay a dividend to shareholders, which might appeal to investors who prefer companies that reinvest earnings back into the business for growth.
For those interested in a deeper dive into SPAR Group's financials and market performance, InvestingPro offers additional insights and tips. There are currently 10 additional InvestingPro Tips available, which could further inform investment decisions. To access these insights, visit https://www.investing.com/pro/SGRP, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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