BigCommerce Holdings, Inc. (NASDAQ:BIGC) director Jeffrey Gordon Richards has sold a significant portion of his holdings in the company, according to recent filings. Over two days, Richards sold a combined total of 112,527 shares of Series 1 Common Stock, with the transactions totaling approximately $869,364.
The sales occurred on August 9 and August 12, with prices for the shares ranging between $5.38 and $5.76. The weighted average prices for the transactions were $5.5358 on August 9 and $5.4998 on August 12. These sales have reduced Richards' direct holdings in the company substantially, as detailed in the filings.
On the first day of the reported transactions, Richards sold 2,948 shares at an average price of $5.5358 and 80,316 shares at the same average price. Following these transactions, the remaining shares owned by Richards, indirectly through GGV Capital V Entrepreneurs Fund L.P. and GGV Capital V L.P., were 12,532 and 341,741, respectively.
On August 12, another set of sales took place with 2,629 shares sold at an average price of $5.4998 and 71,634 shares at the same price. After these sales, the indirect holdings through GGV Capital V Entrepreneurs Fund L.P. and GGV Capital V L.P. stood at 9,903 and 270,107 shares, respectively.
Richards, associated with GGV Capital V L.L.C., which is the general partner of both GGV Capital V Entrepreneurs Fund L.P. and GGV Capital V L.P., may be deemed to have voting and dispositive power over the shares held by these entities. However, he has disclaimed beneficial ownership of the reported securities except to the extent of his pecuniary interest in such securities.
The transactions were reported in compliance with SEC regulations, which mandate the disclosure of sales and purchases of securities by company insiders. The reported transactions provide investors with insight into the trading activities of one of BigCommerce's directors, offering a glimpse into insider confidence and financial moves within the company.
In other recent news, BigCommerce Holdings, Inc. reported steady growth in its second quarter of 2024 earnings call. The company's revenue neared $82 million, marking an 8% year-over-year increase, and an adjusted EBITDA of $3 million was achieved. The company also reported an operating cash flow of just under $12 million. These recent developments highlight successful customer launches and ongoing product advancements.
BigCommerce's subscription revenue grew 10% year-over-year to approximately $62 million, while its partner and services revenue increased by 4% year-over-year to just over $20 million. The company provided guidance for Q3 revenue to be between $82 million and $84 million and projected full-year revenue to range from $330.2 million to $335.2 million. Despite facing challenges such as slower growth in the European market and a decrease in net customer additions, BigCommerce maintains a strategic focus on efficient revenue growth and operational efficiency.
InvestingPro Insights
Amidst the recent insider trading activity at BigCommerce Holdings, Inc. (NASDAQ:BIGC), investors are keenly observing the company's financial health and stock performance. InvestingPro data reveals a market capitalization of $435.42 million, reflecting the company's current valuation in the market. Despite challenges, BigCommerce boasts an impressive gross profit margin of 76.49% for the last twelve months as of Q2 2024, indicating strong operational efficiency in generating profit from its revenues.
However, the financial metrics also highlight areas of concern. The company's P/E ratio stands at -10.45, suggesting that the market currently values the company at a discount due to its lack of profitability over the last twelve months. Additionally, the stock has been under pressure, with a 1 month price total return of -28.81% and a 3 month price total return of -28.44%, as of the latest data. This aligns with one of the InvestingPro Tips indicating that the stock has fared poorly over the last month.
Investors considering BigCommerce as an investment opportunity may find the InvestingPro Tip regarding the stock trading near its 52-week low particularly relevant. This could signal a potential entry point for those who believe in the company's long-term prospects, especially given that analysts predict the company will be profitable this year. For those looking for more comprehensive analysis, there are additional InvestingPro Tips available on the platform, providing deeper insights into BigCommerce's performance and future outlook.
For a more detailed analysis and further InvestingPro Tips on BigCommerce Holdings, Inc., visit https://www.investing.com/pro/BIGC.
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