CompoSecure, Inc. (NASDAQ:CMPO) Chief Revenue Officer Amanda Mandy Gourbault has sold 14,397 shares of the company's Class A Common Stock, according to a recent SEC filing. The transaction was executed on August 12, 2024, with the total sale amounting to approximately $158,079, at a price of $10.98 per share.
The sale has reduced Gourbault's direct holdings to zero, as indicated in the filing. However, it should be noted that the reported shares include those owned by Gourbault's husband. The filing also detailed Gourbault's indirect holdings, which include a mix of restricted stock units (RSUs) and performance-vesting RSUs, as well as shares owned outright. Specifically, the holdings encompass 160,694 RSUs set to vest on future dates, additional performance-vesting RSUs tied to company performance targets, and shares acquired through the company's Employee Stock Purchase Plan.
The RSUs mentioned in the filing are subject to vesting conditions based on continued service and the achievement of performance targets, with some set to vest on January 1 of 2025, 2026, and 2027. Upon vesting, these RSUs will be converted into Class A Common Stock. The total indirect holdings, as disclosed in the footnotes of the SEC filing, amount to 1,039,500 shares, including vested and unvested RSUs.
The transaction by the Chief Revenue Officer is part of the standard disclosures required by company executives and is publicly available for investors' scrutiny. CompoSecure, Inc., headquartered in Somerset, New Jersey, operates within the finance services sector, focusing on crypto assets and related technologies.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, these transactions can be influenced by a variety of factors and may not necessarily indicate a change in company outlook.
In other recent news, CompoSecure, Inc. has undergone a significant change in ownership structure and governance. Investment firm Resolute Holdings I, LP, led by David Cote and Tom Knott, has agreed to acquire a majority interest in CompoSecure. This major shift involves Class B stockholders exchanging their holdings for Class A common stock, which will then be sold to an entity affiliated with Resolute. The company's dual-class stock structure will be eliminated as a result.
In addition, CompoSecure has reported a rise in net sales by 9% in the first quarter, reaching a record $104 million. The company also confirmed its full-year guidance, projecting net sales between $408 million and $428 million, and adjusted EBITDA from $147 million to $157 million. Furthermore, the company has entered into a partnership with Robinhood (NASDAQ:HOOD) Markets, Inc., and Fiserv (NYSE:FI) to produce the Robinhood Gold Card.
Lastly, a new credit agreement was established, providing a $200 million senior secured term facility and a $130 million senior secured revolving credit facility, with an option to increase each by $100 million. The agreement matures on August 7, 2029. These are some of the recent developments in CompoSecure, Inc.
InvestingPro Insights
As CompoSecure's Chief Revenue Officer Amanda Mandy Gourbault makes notable changes to her stake in the company, investors are keeping a close eye on the company's performance metrics and market position. According to the latest data from InvestingPro, CompoSecure, Inc. (NASDAQ:CMPO) boasts a market capitalization of $911.65 million, reflecting its standing in the finance services sector, particularly in the realm of crypto assets and related technologies.
InvestingPro Tips highlight that CompoSecure is trading at an attractive P/E ratio of 8.35, suggesting that the stock could be undervalued relative to its near-term earnings growth potential. This is further supported by a significant P/E Ratio adjustment for the last twelve months as of Q2 2024, which stands at 11.64. Moreover, the company's net income is expected to grow this year, with three analysts having revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's profitability.
Additionally, the company's strong performance is reflected in its returns, with a notable 46.27% price total return over the last month and a substantial 71.45% return over the last year. These figures demonstrate CompoSecure's growth trajectory and may be of particular interest to investors considering the recent insider transaction. It's also worth noting that CompoSecure does not pay a dividend to shareholders, which could be a strategic decision to reinvest earnings into further growth and development.
For those interested in a deeper analysis, InvestingPro offers a comprehensive suite of tools and additional tips, with 15 more InvestingPro Tips available for CompoSecure at https://www.investing.com/pro/CMPO, providing investors with a more detailed perspective on the company's financial health and market position.
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