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the Johns Lyng Group Ltd. (ASX:JLG) The stock price heads south in early Friday afternoon trading.
This comes as a few insiders decided to sell some of their shares.
As of this writing, shares of the construction services group are down 4.34% at $5.95.
Management discharges shares
In today’s statement, Johns Lyng revealed that Scott Didier and Lindsay Barber have both sold shares in the company.
The group’s managing director and CEO, Didier, sold 1 million Johns Lyng shares on the market at $6.25 each.
Following the transaction, Didier now owns over 53.31 million fully paid shares of Johns Lyng common stock. This equates to an approximate 20.6% stake in the company’s registry.
Additionally, the Barber Group’s Executive Director and COO also trimmed his portfolio with 1 million shares sold. The price received per Johns Lyng share was $6.65.
After completing the sale, Barber retains nearly 12.82 million shares of the company. His current stake is 4.95% in the books of Johns Lyng.
The company said the pair sold those stocks to manage their personal asset portfolios.
Furthermore, Didier recently moved to the United States to take advantage of a number of opportunities. This comes after the company acquired Reconstruction Experts for US$144 million in December 2021.
Barber’s role includes overseeing operations in Australia and the United States.
The company is still assessing the financial impact of recent catastrophic weather-related events in Queensland and New South Wales.
Although it’s too early to determine the cost, at this point management reaffirmed its previous profit guidance for FY22.
As such, revenue for the full year is expected to be $802.4 million, compared to $481.8 million in FY21.
In addition, earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to reach $78.7 million in FY22. This reflects an 84% increase over the prior corresponding period (FY21: $42.7 million).
Johns Lyng stock price overview
Over the past 12 months, Johns Lyng shares have gained 40%, but since the start of the year they have headed the other way, down 33%.
The company’s share price has been on a downward trajectory since early May.
Currently, the Relative Strength Index (RSI) is at 22, indicating that the company’s shares have been significantly oversold.
The RSI is a momentum oscillator that is used to gauge the strength or weakness of a stock price. Normal levels are between 30 and 70, as whatever happens on the outside reveals whether the stock price is attractive to buy or expensive.
Johns Lyng commands a market capitalization of around $1.66 billion.