Li-Cycle executive sells shares worth $3,440 By Investing.com

In a recent transaction, Carl DeLuca, General Counsel and Corporate Secretary of Li-Cycle Holdings Corp. (NYSE:LICY), sold 1,376 common shares of the company at a price of $2.50 per share, totaling $3,440. This sale was reported in a filing with the Securities and Exchange Commission dated August 13, 2024.

The transaction is described as an automatic sell to cover, which is a common practice used by executives to satisfy tax liabilities that arise from the vesting of restricted stock units (RSUs). It’s important to note that such transactions are typically non-discretionary and are triggered by the vesting schedule of the equity award.

Following this transaction, DeLuca still holds a total of 101,672 common shares in Li-Cycle Holdings Corp. This figure includes 3,933 RSUs that are yet to vest and are subject to time-based conditions as per the company’s 2021 Incentive Award Plan. The total number of shares owned by DeLuca has been adjusted to reflect a share consolidation that occurred on June 3, 2024, which consolidated every eight pre-consolidation shares into one post-consolidation share.

Li-Cycle Holdings Corp. specializes in hazardous waste management and has been gaining attention in the energy and transportation sector for its innovative approaches to recycling lithium-ion batteries.

Investors often monitor the buying and selling activities of company insiders as it can provide insight into their perspective on the company’s current valuation and future prospects. However, it is also common for executives to sell shares for reasons that may not necessarily reflect their outlook on the company’s performance, such as personal financial planning or to meet tax obligations as in the case of DeLuca’s recent transaction.

In other recent news, Li-Cycle Holdings Corp. reported its Q2 2024 progress, focusing on finalizing a U.S. Department of Energy (DOE) loan and advancing various projects such as the Rochester Hub initiative. The company is also in the process of optimizing its Spoke network and exploring additional financing options. Li-Cycle’s Rochester Hub project has an estimated completion cost of $490 million and is currently undergoing a comprehensive review.

Despite the current softness in metal prices, Li-Cycle maintains confidence in the long-term economic viability of its projects and the growth of the battery recycling industry. This confidence stems from the increasing shift towards electric vehicles and a trend towards localized supply chains. The company has not provided a specific closing date for the DOE loan, but it is in the final stages of securing the loan and finalizing the financing documentation.

Analysts point out that Li-Cycle is well-positioned to fill the gap in post-processing recycling capacity, benefiting from these industry trends. The company’s outlook remains optimistic despite the challenges presented by soft metal prices, as its projects are not solely reliant on any single metal and the DOE’s expectations are based on conservative commodity prices. These are the recent developments for Li-Cycle Holdings Corp.

InvestingPro Insights

Li-Cycle Holdings Corp. (NYSE:LICY), a leader in lithium-ion battery recycling, has been navigating a challenging financial landscape. According to InvestingPro, the company operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly concerning given that Li-Cycle’s stock has been in oversold territory, as evidenced by its Relative Strength Index (RSI). Furthermore, the stock is trading at a low Price / Book multiple, which might attract investors looking for potential value plays.

The financial health of Li-Cycle is reflected in its recent metrics. With a market capitalization adjusted to approximately $53.33 million, the company’s financial data indicates a negative Price/Earnings (P/E) ratio of -0.31 over the last twelve months as of Q2 2024. This suggests that the company has not been profitable during this period. Additionally, Li-Cycle’s revenue has decreased by 31.5% over the last twelve months, highlighting the challenges faced in generating sales growth. Despite a quarterly revenue growth of 133.33% in Q2 2024, the overall trend points to a company struggling to maintain consistent revenue expansion.

Investors should note that Li-Cycle’s financial performance has led to a significant decline in its stock price, with a one-year total return of -93.01% as of the data reported, placing the stock price at just 6.48% of its 52-week high. These figures underscore the volatility and the downward pressure that the stock has experienced.

For those interested in a deeper dive into the company’s financials and strategic position, there are additional InvestingPro Tips available at InvestingPro’s Li-Cycle page, which can provide further insights into the company’s valuation and performance.

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