SK Inc. and 8 Rivers Capital report sales of NET Power shares worth over $600k By Investing.com

In a recent move, two significant shareholders of NET Power Inc. (NYSE:NPWR), SK Inc. and 8 Rivers Capital, LLC, have executed sales of the company’s Class A Common Stock, totaling over $600,000. The transactions took place over a span of three days, with a price range between $7.2844 and $7.6045 per share.

The largest transaction occurred on September 9, 2024, with 60,022 shares sold at a weighted average price of $7.6045. Following this, an additional 300 shares were sold on September 10 at $7.3100 per share. The series of sales concluded on September 11, with 21,155 shares changing hands at a weighted average of $7.2844 per share.

The total amount realized from these sales was approximately $612,731, reflecting a significant trading activity by the reporting owners. SK Inc. and 8 Rivers Capital are both substantial shareholders of NET Power Inc., each owning more than 10% of the company’s stock.

SK Inc., based in Seoul, South Korea, and 8 Rivers Capital, headquartered in Durham, North Carolina, have indicated that the sales were conducted indirectly through NPEH, LLC. According to the footnotes provided in the SEC filing, 8 Rivers Capital, as the manager and holder of a significant portion of NPEH’s equity, may be deemed to have beneficial ownership of the securities sold. However, 8 Rivers has disclaimed beneficial ownership of these securities, except for any pecuniary interest it may hold.

Similarly, SK Inc., through its indirect beneficial ownership of voting units in 8 Rivers, may also be considered a beneficial owner of the sold securities. Nonetheless, SK Inc. has disclaimed beneficial ownership, except to the extent of its pecuniary interest.

The recent sales by SK Inc. and 8 Rivers Capital provide a glimpse into the trading behavior of major shareholders in NET Power Inc., a company specializing in electrical industrial apparatus manufacturing. Investors and market watchers often look to such transactions as indicators of insider sentiment towards the company’s future prospects and valuation.

In other recent news, NET Power, a clean power technology company, has made significant strides in their utility-scale clean power technology. During their Q2 2024 earnings call, they confirmed that their first utility-scale plant, Project Permian, is expected to start up between late 2027 and early 2028. The company reported $609 million in cash investments and anticipates an increase in operational cash flow due to organizational expansion.

NET Power’s strategy involves targeting competitive power markets in North America, with a focus on regions with , a market for power, and CO2 storage capabilities. The firm is also making strategic supply chain partnerships to deploy multiple plants annually by the early 2030s and has signed a limited notice to proceed with Baker Hughes for long lead materials for Project Permian.

While the company expects an increase in cash flow used in operations due to growth, they are exploring financing opportunities for the Permian plant, including potential federal or state-level capital. NET Power is also looking to scale manufacturing and deploy multiple plants per year in the future. The company’s success hinges on the demonstration of their technology at utility scale, positioning them as a key player in the transition to clean energy.

InvestingPro Insights

The recent sales by significant shareholders of NET Power Inc. (NYSE:NPWR) coincide with a challenging period for the company, as reflected in the InvestingPro data and tips. With a market capitalization of $1.5 billion, NET Power’s financial health and stock performance are critical for investors monitoring the company’s trajectory.

InvestingPro Tips highlight that NET Power holds more cash than debt on its balance sheet, which is a positive sign of financial stability. However, the stock has experienced a substantial decline over the last week, month, and three months, with price total returns of -10.45%, -14.65%, and -30.57% respectively. This suggests a bearish sentiment among investors, potentially influenced by the company’s weak gross profit margins, which stood at a negative 710.08% for the last twelve months as of Q2 2024. This is significant when considering the insider sales, as it may reflect a broader concern about the company’s profitability and market position.

Additional InvestingPro Insights reveal that NET Power is a niche player in its industry, which could either be an advantage or a disadvantage depending on market trends and competitive dynamics. Notably, analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. Moreover, NET Power does not pay a dividend to shareholders, which might detract income-focused investors.

InvestingPro offers a comprehensive list of additional tips for NET Power Inc., which can be found at https://www.investing.com/pro/NPWR. These insights could provide investors with a deeper understanding of the company’s financial health and market performance, aiding in making more informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.