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      How NV5 (NVEE) Stock Stabilized Amidst Insider Selling?

      By Fahim Awan

      Published on

      November 17, 2023

      1:09 PM UTC

      How NV5 (NVEE) Stock Stabilized Amidst Insider Selling?

      NV5 Global, Inc. (NASDAQ: NVEE) witnessed a marginal decline in its stock value on Thursday, settling with a modest 0.48% decrease to conclude the trading session at $99.34. Interestingly, this stability persisted despite the disclosure of insider selling in a recent SEC filing.

      The divulgence revealed that on November 14, 2023, Richard Tong, the Executive Vice President and General Counsel of NV5 Global, executed the sale of 3,167 shares. The transaction, conducted at $96.81 per share, yielded gross proceeds amounting to $306,798.

      Contrary to the anticipated impact of insider selling, the market equilibrium was sustained through a strategic acquisition by NVEE. The company disclosed its acquisition of Technology Design Services, Inc. (TDSi) in an announcement made yesterday. TDSi specializes in the design, integration, and implementation of data center, technology, audiovisual, security, and telecommunication systems, catering to clients seeking robust data communications infrastructure solutions.

      Established in 1999, TDSi operates from its headquarters in Chicago, serving sectors such as aviation, government, finance, and healthcare. Notably, 80% of TDSi’s revenue is derived from recurring sources. The acquisition, funded through a combination of cash and stock, is projected to contribute immediately to NV5’s earnings.

      The addition of TDSi enhances NV5’s capabilities in two rapidly expanding and lucrative sectors within its portfolio. Furthermore, the acquisition fortifies NVEE’s relationships with key clients in aviation and government, providing an avenue for the company to offer extended services to the domestic data center and technology design sector. This strategic move positions NV5 for sustained growth, leveraging the expertise and contributions of the TDSi team in these pivotal segments.

      NV5 secures vital contracts totaling around $7 million from the North Carolina Department of Transportation (NCDOT) to bolster key infrastructure initiatives across the state. A $4 million, two-year contract entails feasibility studies, corridor assessments, design evaluations, traffic analyses, NEPA/SEPA planning, and public outreach for highway infrastructure projects.

      Additionally, a $3 million contract covers bridge design, preservation, and replacement planning, encompassing a diverse range of highway structures such as bridges, culverts, retaining walls, and utility attachments over a two-year period.

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