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AvePoint executive sells shares worth over $324k

Published 08/26/2024, 09:13 PM
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AvePoint, Inc. (NASDAQ:AVPT) has reported a series of stock sales by executive Lu Zhijian, according to recent filings with the Securities and Exchange Commission. Over a span of several days, Zhijian sold a total of 30,000 shares of AvePoint common stock, garnering over $324,800 from the transactions.

The sales occurred on three separate dates, with 10,000 shares sold each day. On August 22, 2024, shares were sold at $10.85 each, followed by sales at $10.83 per share on August 23, and finally, shares were sold at $10.80 each on August 26. These transactions indicate a slight decrease in the selling price over the course of the reported period.

Following these sales, Zhijian's direct ownership in AvePoint stands at 18,410,673 shares, which includes indirect ownership through various trusts and LLCs. Notably, the reported transactions were executed in accordance with a Rule 10b5-1 trading plan that Zhijian had adopted on May 19, 2024.

Investors may find the details of the ownership, including the breakdown of shares held by different entities, in the footnotes of the SEC filing. It is important to note that Zhijian disclaims beneficial ownership of the shares held by these trusts and LLCs, except to the extent of his pecuniary interest.

The reported sales by a significant shareholder and executive at AvePoint, a leader in prepackaged software services, provide valuable insights into executive stock transactions, which are often closely monitored by investors for indications of company insiders' perspectives on the stock's future performance.

In other recent news, AvePoint reported a strong performance in Q2 2024, exceeding its financial guidance. The company's total revenues reached $78 million, a 20% increase from the previous year, driven by an impressive 40% growth in SaaS revenue. AvePoint's recurring revenue mix has hit a record 87%, and the company's net retention rate stands at 110%.

These developments are part of AvePoint's strategic focus on innovation and customer needs in a multi-cloud environment, leading to significant customer wins. The company raised its full-year guidance for total ARR, total revenues, and non-GAAP operating income. For Q3, AvePoint expects total revenues of $82 million to $84 million and non-GAAP operating income between $11 million and $12 million.

Bearish highlights include a decline in some revenue lines such as term license and support and maintenance revenue. However, bullish highlights include significant customer wins and consistent growth in SaaS revenue across all regions. Despite these successes, the widespread deployment of enterprise-wide AI remains limited, as noted in the company's Q2 2024 earnings call.

InvestingPro Insights

AvePoint, Inc. (NASDAQ:AVPT) has recently caught the attention of the market, not only due to executive stock sales but also because of its financial and operational performance. According to InvestingPro data, AvePoint boasts a market capitalization of $2.01 billion, reflecting the company's substantial size within the software services sector. Despite a negative P/E ratio of -136, suggesting the company is not currently profitable, the company's revenue growth over the last twelve months has been robust at 19.57%, indicating a strong expansion of its business.

InvestingPro Tips highlight several key aspects of AvePoint's financial health and future prospects. Importantly, the company holds more cash than debt on its balance sheet, which can provide financial flexibility and resilience in the face of economic uncertainty. Moreover, analysts have recently revised their earnings estimates upwards for the upcoming period, which could signal confidence in AvePoint's potential to improve its bottom line. Notably, the company is expected to turn profitable this year, which is a significant milestone for investors to consider.

For those seeking a deeper dive into AvePoint's performance and outlook, InvestingPro offers additional tips. There are currently 12 more InvestingPro Tips available, which can provide investors with a comprehensive analysis of AvePoint's financial standing and market potential. These tips could be especially valuable for investors trying to understand the implications of executive stock sales and the overall trajectory of the company.

With AvePoint trading near its 52-week high and showing a strong return over the last three months, the company's stock dynamics warrant close observation. The insights provided by InvestingPro, including the InvestingPro Fair Value estimate of $8.89, can help investors make more informed decisions regarding their investment in AvePoint.

For more detailed analysis and additional InvestingPro Tips, interested readers can visit https://www.investing.com/pro/AVPT.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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