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Wednesday, September 27, 2023

Nine Energy Service, Inc. (NINE) Stock Faltering after Surge on Wednesday, Here’s Why

Nine Energy Service, Inc. (NINE), an onshore completion services provider targeting unconventional hydrocarbon resources, closed Wednesday’s regular trading session at $3.55 after gaining an increase of 6.93% during the day. In the premarket trading session, NINE stock has slid by 3.94% and consequently was trading at $3.41 at the last check. The decline in stock price could be attributed to the announcement of the stock option grant.

Stock Options Grant

On Wednesday, after the closure of the market, NINE announced that it had granted 2,600,000 stock options to its several officers, directors and employees. The company said that the stock options could be vested on an immediate basis and that they could be exercised with an exercise price of $0.18 per share for 5 years from the date on which they were issued.

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Q4 & FY 2021 Results

Earlier in March, NINE announced the financial results for Q4 and FY 2021. The company reported revenue of $349.4 million for FY 2021. The net loss suffered by the company during the period was $64.6 million (or a loss per share of $2.13). During the fourth quarter, the company reported revenues of $105.1 million. The gross profit generated during the three months was $4.7 million.

Comments from NINE CEO

Ann Fox, President and Chief Executive Officer of NINE, stated that the company has outperformed the guidance for Q4 2021, the reason being strong performance on the technical front by the employees. The company has seen improvements in the activity across most of its service lines, resulting in a more than 13% increase in revenue on a quarter-per-quarter basis.

What’s in Store for NINE?

Looking ahead, analysts believe that short term signals are pointing in a positive direction for NINE stock. Alongside that, the general trend is also depicting optimistic signals. Hence, at the current level, the stock holds an excellent buying opportunity for potential investors.


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