8 Rivers Capital and SK Inc. sell shares in NET Power Inc. Via Investing.com

In recent trading activity, 8 Rivers Capital, LLC and SK Inc., both significant stakeholders in NET Power Inc. (NASDAQ:NPWR), made sales of the company’s Class A common stock. The transactions, which took place over several days, resulted in a total combined sale value of $285,666.

On September 12, 2024, a sale of 2,315 shares was reported at a weighted average price of $7.2635 per share. This was followed by another sale on September 13, where 1,340 shares were sold at an average price of $7.2596. Selling continued on September 16, with a substantial sale of 36,752 shares at an average price of $7.0506 per share. The prices for these sales ranged from $7.00 to $7.30, as detailed in the footnotes to the SEC filing.

These sales adjusted the ownership stakes of both 8 Rivers Capital and SK Inc. in NET Power Inc. Following the transactions, the shares held by NPEH, LLC, an affiliated entity, as indicated in the footnotes, have been updated to reflect the new totals. .

It is important to note that the sales do not affect the total number of Class A common shares held by NPEH, LLC, which is 567,445 after the exchange of 500,000 Class A units of NET Power Operations LLC for an equal amount of common shares of the class A. Shares on September 16, 2024. This exchange was made at a one-for-one rate and had no monetary value associated with it, according to SEC filing footnotes.

8 Rivers Capital, as administrator and holder of a significant portion of the equity capital of NPEH, may be considered a beneficial owner of the securities held directly by NPEH. However, 8 Rivers disclaimed beneficial ownership of these securities except for its pecuniary interest. Similarly, SK Inc. may also be considered the beneficial owner of the securities beneficially owned by 8 Rivers and NPEH due to its indirect beneficial ownership structure. SK Inc. has also disclaimed beneficial ownership of these securities, unless his pecuniary interest is involved.

Investors and analysts who keep track of insider trades like these can often gain insight into the sentiment of a company’s major stakeholders. Sale of shares by 8 Rivers Capital and SK Inc. at NET Power Inc. it’s certainly a noteworthy development for those who follow the company’s stock closely.

In other recent news, NET Power, a low-carbon power generation technology company, is facing a revised price target from Citi. The financial institution reduced the target to $8.00 from the previous $11.00, while maintaining a neutral rating. This decision followed a visit to NET Power’s La Porte demonstration unit, where Citi analysts noted an increase in perceived execution risk leading to a higher cost of capital.

Other developments include NET Power’s recent Q2 2024 earnings call where they highlighted their progress in clean energy technology. The company confirmed that their first utility-scale plant, Project Permian, is scheduled to start up between the second half of 2027 and the first half of 2028. NET Power ended the quarter with $609 million in cash investments and anticipates growth of cash flow. used in operations as they expand their organization.

These are recent developments that provide insight into NET Power’s future operations and plans. As the company continues to advance its clean energy solutions, it is also exploring financing opportunities for the Permian plant, including potential federal or state capital. Despite Citi’s revised price target, NET Power maintains a positive outlook for its technology and clean energy transition.

InvestingPro Insights

Amid recent insider trading activity, NET Power Inc. (NASDAQ:NPWR) presented several notable financials and analyst observations. According to InvestingPro, NET Power has more cash than debt on its balance sheet, which could be a sign of financial stability. However, the company’s gross profit margins were weak, a potential concern for investors evaluating the company’s profitability and operating efficiency.

InvestingPro Data reveals that NET Power’s market capitalization stands at approximately $1.51 billion. The company’s P/E ratio is currently negative at -24.2, reflecting a lack of profitability over the trailing twelve months through Q2 2024. Additionally, the share price has seen a significant decline over the past year, with a total price return of – 56.45%. This share price decline can be correlated with the company’s recent negative gross profit margin of -710.08% reported for the same period.

InvestingPro Tips indicates that NET Power’s share price often moves against the market, which could be a point of interest for investors looking for an uncorrelated asset. Furthermore, the company is trading near its 52-week low, currently at 42.9% of its 52-week high, potentially presenting a buying opportunity for investors who believe in the company’s long-term prospects.

For those interested in additional information, there is additional InvestingPro advice available for NET Power Inc. which can be accessed through the dedicated page at https://www.investing.com/pro/NPWR. These tips provide deeper analysis that could help investors make more informed decisions about their NPWR investment.

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