LM Funding America, Inc. (NASDAQ:LMFA) Vice President of Operations, Ryan H. Duran, has sold a portion of his holdings in the company. According to a recent filing, Duran sold 500 shares of common stock at prices ranging from $2.90 to $2.939, with the total transaction amounting to approximately $1,460.
The transaction was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan for buying or selling stocks at a time when they are not in possession of material non-public information. This plan is intended to prevent any accusations of insider trading, by allowing the automatic execution of transactions according to the plan's parameters.
Investors following LM Funding America's insider activity will note that the sales took place on March 27, 2024, with the weighted average price per share being $2.9218. Post-transaction, Duran retains ownership of 22,318 shares of LM Funding America's common stock.
The filing also disclosed information about derivative securities, specifically stock options granted to Duran. These stock options, which are rights to buy shares at a predetermined price, have various expiration dates and exercise prices. Notably, options to purchase 41,667 shares at $4.506 per share, 29,167 shares at $35.7 per share, 83 shares at $300 per share, and 14 shares at $3000 per share were reported. Some of these options are already exercisable in full, while others are subject to vesting schedules and certain conditions as outlined in the company's 2021 Omnibus Incentive Plan.
LM Funding America, headquartered in Tampa, Florida, is a specialty finance company that provides funding to nonprofit community associations primarily located in the state of Florida, as well as in Colorado and Illinois. Investors and analysts often monitor insider transactions as they can provide insights into an insider's view of the company's value and future performance. However, it's important to consider that such transactions can be influenced by an individual's personal financial needs and may not always indicate the company's operational performance or prospects.
InvestingPro Insights
As investors digest the news of Vice President of Operations Ryan H. Duran's recent stock sale, a glance at LM Funding America, Inc. (NASDAQ:LMFA) through InvestingPro's lens offers additional context. The company's Market Cap stands at a modest 8.94M USD, reflecting its position in the market. Despite a challenging financial landscape, LMFA has demonstrated a remarkable Revenue Growth of 993.94% in the last twelve months as of Q1 2023, indicating a potentially positive sales trajectory that analysts anticipate will continue in the current year.
However, the company's financial health is not without its concerns. LMFA's Price / Book ratio is at 0.21, which might suggest undervaluation, aligning with the InvestingPro Tip that the stock is trading at a low Price / Book multiple. This could attract investors looking for potentially undervalued stocks. On the flip side, the company's Gross Profit Margin stands at 11.82%, pointing to struggles in maintaining profitability against its revenues. This is corroborated by another InvestingPro Tip indicating weak gross profit margins.
For those interested in the stock's recent performance, LMFA has experienced a significant return over the last week with a 10.34% price total return. This volatility is consistent with the InvestingPro Tip that the stock generally trades with high price volatility, which may appeal to certain investors who specialize in or are comfortable with more volatile assets.
For additional insights and tips on LM Funding America, Inc., including an analysis of the company's cash burn rate and profitability outlook, investors can explore further on InvestingPro. There are 14 more InvestingPro Tips available to help guide investment decisions, which can be accessed with a special offer. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and unlock the full potential of InvestingPro's analysis.
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