TISI

Team Inc ($TISI) Major Shareholder Signals Turnaround Confidence with $430K Concentrated Buying Spree

06/09/2025 23:21

Team Inc ($TISI) has captured market attention with a recent wave of significant insider buying, particularly from major shareholder John Barrett, who engaged in concentrated purchasing throughout early June. Team Inc is a specialty industrial services company headquartered in Sugar Land, Texas, with over 50 years of history since its 1973 founding. The company operates through two main segments: Inspection and Heat Treating (IHT) services and Mechanical Services (MS), providing non-destructive testing, ultrasonic testing, pipeline integrity services, leak repair, and composite repair services. With approximately 5,400 employees across the United States, Canada, and Europe, Team serves diverse industrial clients globally. Barrett's buying spree extended from June 2nd through June 9th, demonstrating sustained confidence in the company's prospects. He purchased 1,613 shares at $17.91 per share on June 2nd, followed by 5,856 shares at $19.07 on June 3rd, and 2,311 shares at $19.02 on June 4th. The purchasing continued with 1,910 shares at $19.23 on June 5th, 5,572 shares at $19.05 on June 6th, and 5,640 shares at $18.57 on June 9th. The total purchase of 22,902 shares represented approximately $430,000 in aggregate value, marking a substantial concentrated investment by the major shareholder. $TISI's stock price has experienced significant volatility over the past year. Starting at $7.95 in June 2024, shares surged over 220% to reach $25.29 in October 2024, before correcting to $12.68 by year-end. The stock has recovered in 2025, currently trading around $19.38, representing approximately 45% year-to-date gains that significantly outperform the S&P 500's 12% advance over the same period. The insider trading pattern reveals growing confidence among key stakeholders. Following Corre Partners Management's purchases in June 2024 and Director Anthony Horton's November purchase, Barrett's recent concentrated buying represents the most significant insider activity. While Director Evan Lederman engaged in some profit-taking sales on May 29th and June 5th, the overall insider sentiment remains strongly positive. The industrial services sector has shown recovery signals since late 2024, with increased energy infrastructure investment and manufacturing reshoring trends benefiting inspection and maintenance service providers like Team Inc. The company's expansion into higher-value sectors including aerospace, midstream energy, and industrial laboratory testing has gained particular attention from investors. Financially, Team Inc is navigating a turnaround phase. While trailing twelve-month revenue reached $851.33 million, the company reported a net loss of $50.79 million. However, a successful refinancing transaction in early 2025 extended debt maturities through 2030 and reduced blended interest rates by over 100 basis points. Management targets 15% adjusted EBITDA growth for 2025, focusing on cost reduction and margin improvement initiatives. Recent quarterly performance shows encouraging signs of improvement. Fourth quarter 2024 operating income turned positive at $2.2 million, while adjusted EBITDA increased over 50% to $14.6 million. Free cash flow also turned positive at $13.3 million for 2024, representing a significant improvement from the prior year's negative performance. Team Inc competes with global inspection service providers including SGS SA, Bureau Veritas, and Intertek Group. However, the company differentiates itself through North American market specialization and expertise in petrochemical, refining, and power plant sectors. Key upcoming catalysts include the second quarter earnings release scheduled between August 6-11, where management's EBITDA growth targets and margin improvement progress will be closely scrutinized. The continuation of aerospace segment growth, which showed 46% revenue increase at the Cincinnati facility, remains another focal point. Short-term prospects appear supported by insider buying signals and restructuring benefits, though the high debt-to-equity ratio of 17.55 times and persistent losses remain risk factors. Long-term growth potential is tied to energy infrastructure investment expansion and manufacturing reshoring trends that could drive demand for the company's specialized services. Barrett's substantial purchasing activity signals strong insider confidence in the company's turnaround narrative. Investors should closely monitor the upcoming earnings announcement alongside the company's operational restructuring progress to assess the sustainability of its recovery trajectory.

You can receive notifications when news is published.