The CEO of Summit Midstream sells $111,080 in the same share By Investing.com

HOUSTON-Deneke J. Heath, Chairman, President, and CEO of Summit Midstream Corp (NYSE:), recently sold $111,080 worth of stock. The transaction, which took place over three consecutive days from November 25 to November 27, involved the sale of 3,000 shares in total.

The shares were traded at prices ranging from $36.85 to $37.16 per share. Following this, Heath still owns 279,006 shares, according to a Form 4 filing with the Securities and Exchange Commission.

The sale of these shares was carried out under a pre-established trading plan, in accordance with Rule 10b5-1, which allows insiders to establish a predetermined plan for the sale of shares in accordance with the rules of insider trading.

In other recent news, Summit Midstream Corporation has announced the substantial acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries from Tailwater Capital LLC. The deal, which is valued at a combination of cash and cash equivalents, is expected to close in the fourth quarter of 2024. The acquisition includes a cash payment of $155 million and approximately 7.5 million shares of SMC Class B common stock. The purpose of this strategy is to improve Summit’s growth and economic flexibility, expanding its operations in the Arkoma Basin.

Summit Midstream Corporation reported strong Q1 results, with revenue of $132.9 million and adjusted EBITDA of $70.1 million. These recent financial developments followed the company’s divestment of its Northeast assets for nearly $700 million, reflecting a shift in focus on consolidation and acquisitions in the Rockies and Permian sectors.

In another recent development, Summit Midstream Partners, LP completed a corporate reorganization, including a merger with Summit Midstream Corporation. The change from a master limited partnership to a C corporation is intended to simplify the company’s structure and reduce its long-term costs.

These recent developments demonstrate Summit Midstream Corporation’s commitment to operational excellence and shareholder value. The acquisition of Tall Oak Midstream Operating, LLC and corporate restructuring are key steps in the company’s growth.

InvestingPro Insights

The latest investment by Summit Midstream Corp’s CEO Deneke J. Heath comes at a time when the company’s financials are presenting a mixed picture. According to InvestingPro data, SMC has seen a return on investment of 98.03% over the past year, which indicates strong confidence in the market. This is consistent with one of InvestingPro’s Recommendations, which refers to the company’s “Greatest return of the past year.”

However, investors should be aware that SMC operates with significant debt and has not been profitable in the past twelve months, as evidenced by InvestingPro’s additional recommendations. The company’s revenue over the past twelve months represents $450.86 million, with revenue growth of 7.8%. Despite this growth, SMC’s basic and diluted EPS from continuing operations are negative at $12.53, indicating profitability issues.

It is worth noting that the price movement of SMC is volatile, which may explain the CEO’s decision to sell the stock under the previously established trading plan. The company’s Price to Book ratio of 0.73 indicates that the stock may be undervalued compared to its book value, which may provide an opportunity for investors.

For those interested in more detailed analysis, InvestingPro offers additional tips and metrics that can provide deeper insight into SMC’s financials and market conditions. Then, InvestingPro contains 5 more tips for Summit Midstream Corp, which may be useful for investors who want to make informed investment decisions.

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