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FiscalNote CFO sells shares to cover tax obligations

Published 09/11/2024, 05:13 PM
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FiscalNote Holdings, Inc.'s (NYSE:NOTE) Chief Financial Officer and Senior Vice President of Corporate Development, Jon Slabaugh, has recently sold shares of the company's stock, according to the latest filings with the Securities and Exchange Commission. The transaction was carried out to satisfy tax obligations related to the vesting of restricted stock units.


On September 9, 2024, Slabaugh sold 928 shares of FiscalNote's Class A Common Stock at a price of $1.1786 per share, totaling approximately $1,093. The sale was part of a pre-arranged Rule 10b5-1 trading plan, which was adopted on May 14, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing an affirmative defense against accusations of trading on nonpublic information.


Following this transaction, Slabaugh still holds a substantial stake in the company, with 564,259 shares remaining in his possession. The sale was made specifically to cover tax liabilities that arose upon the vesting of 1,714 restricted stock units, a common practice known as a "sell-to-cover" transaction.


Investors often monitor insider transactions for insights into how company executives perceive the value of their company's stock and to understand financial decisions made by those at the helm. In this case, the transaction appears to be a routine financial operation rather than a reflection of the executive's outlook on the company's future performance.


FiscalNote Holdings, Inc. specializes in business services and operates out of Washington, D.C. The company was formerly known as Duddell Street Acquisition Corp. before changing its name and is incorporated in Delaware.


For those holding or considering an investment in FiscalNote, it is important to keep an eye on such filings to stay informed about significant insider transactions.


In other recent news, FiscalNote has released its Q2 2024 financial results, demonstrating resilience amid macroeconomic challenges. Despite a decrease in total revenue to $29.2 million due to the divestiture of Board.org, the company's subscription revenue remained robust, accounting for 93% of the total. Unfortunately, FiscalNote reported a GAAP net loss of $13 million but managed to achieve a positive adjusted EBITDA of $2 million.


Looking forward, FiscalNote is set to focus on customer engagement, retention, and revenue growth through product innovation. The company has launched StressLens and Copilot for Global Intelligence, which have been well-received by customers. FiscalNote's management is also reviewing strategic alternatives to maximize shareholder value, although there are no immediate plans for further divestitures.


Analysts anticipate FiscalNote's full-year profitability for adjusted EBITDA to be approximately $8 million, with total revenue expected to be around $121 million. The guidance for Q3 2024 is set at approximately $29 million in total revenues and $2 million in adjusted EBITDA. These are the recent developments in FiscalNote's financial landscape.


InvestingPro Insights


FiscalNote Holdings, Inc. (NYSE:NOTE), a specialist in business services, has been navigating a challenging financial landscape. The company's recent insider transaction, involving CFO Jon Slabaugh, aligns with a broader context reflected in key financial metrics and expert analysis.


InvestingPro data indicates a market capitalization of $174.34 million, suggesting a relatively modest size within the industry. The company's price-to-earnings (P/E) ratio stands at -6.05, highlighting that investors are currently facing losses per share. This is further supported by an adjusted P/E ratio for the last twelve months as of Q2 2024 at -2.52, which underscores continued earnings challenges.


On a positive note, FiscalNote has demonstrated an impressive gross profit margin of 72.28% over the last twelve months as of Q2 2024. This indicates a strong ability to control costs relative to revenue, an important factor for potential investors to consider. Despite this, analysts are anticipating a sales decline in the current year, as per InvestingPro Tips. This projected decrease in sales may be a concern for those looking at the long-term growth potential of the company.


Investors should also note that FiscalNote does not pay dividends, which could influence investment decisions for those seeking regular income from their holdings. Additionally, the stock has seen a significant price drop over the last six months, with a total return of -39.41%, potentially signaling a bearish outlook among investors.


For a more comprehensive understanding of FiscalNote's financial health and future prospects, investors can access additional InvestingPro Tips. There are currently 11 more tips available, which can provide deeper insights into the company's financial situation and market position.


These InvestingPro Insights offer a snapshot of the company's current financial standing and future expectations, which are crucial for investors to consider in light of the recent insider transaction and the overall performance of FiscalNote Holdings, Inc.

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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