Form 4: Custom Truck One Source: ECP ControlCo, LLC Sells 2,354,109 Shares of Common Stock

ECP ControlCo, LLC, a 10% owner of Custom Truck One Source, Inc., sold 2,354,109 shares of common stock at a weighted average price of $3.42 on September 5, 2024.

Summary

• On September 5, 2024, ECP ControlCo, LLC sold 2,354,109 shares of Custom Truck One Source, Inc. common stock.
• The shares were sold at a weighted average price of $3.42, with individual transaction prices ranging from $3.42 to $3.72.
• Following the transaction, ECP ControlCo, LLC indirectly holds 23,384,879 shares through various entities.
• The reporting entities include ECP Cardinal Holdings, LP and NESCO Holdings, LP, which hold 4,088,426 and 19,296,453 shares, respectively.
• ECP ControlCo, LLC is controlled by its board of managers, who collectively share voting and disposal power over the securities.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the sale of a significant number of shares by a major shareholder, which could indicate a lack of confidence or a change in investment strategy. However, the company still holds a substantial number of shares.

Negatives

• A significant shareholder, ECP ControlCo, LLC, has reduced its stake in the company by selling 2,354,109 shares.

Risks

• Further sales by ECP ControlCo, LLC could put downward pressure on the stock price.
• The complex ownership structure involving multiple entities could make it difficult to track changes in beneficial ownership.

Industry Context

Sales by large shareholders are common and can reflect portfolio adjustments or changes in investment strategy. It's important to monitor further transactions by ECP ControlCo, LLC and other major shareholders to assess the overall sentiment towards Custom Truck One Source.

Comparison to Industry Standards

• Comparing this transaction to similar sales by major shareholders in the industrial equipment sector could provide context.
• For example, if other large holders in companies like Terex or Manitowoc have been reducing their positions, it might indicate broader industry concerns.
• Analyzing the trading volume and price impact following those sales could offer insights into the potential effect on CTOS.

Stakeholder Impact

• Shareholders may react negatively to the sale, potentially leading to a decrease in stock price.
• Employees may experience uncertainty if the sale signals a change in the company's direction or financial stability.

Key Dates