PLBY Group, Inc. (NASDAQ:PLBY) CEO Bernhard L. Kohn III has recently sold a notable amount of company stock, according to the latest regulatory filings. The transactions, which took place on May 24 and May 28, involved the sale of a total of 43,437 shares of PLBY Group's common stock, resulting in proceeds exceeding $38,000.
The sales were executed at weighted average prices that ranged between $0.8706 and $0.8863 per share. On May 24, a total of 17,414 shares were sold at an average price of $0.8863, while on May 28, another batch of 26,023 shares were sold at an average of $0.8706 per share. These transactions were carried out in multiple parts within the stated price ranges.
Footnotes attached to the filing indicated that the shares sold were primarily to cover tax withholding obligations related to the settlement of restricted stock units previously granted to Kohn. The CEO undertook to provide detailed information about the number of shares sold at each separate price upon request.
Following these transactions, Kohn still holds a substantial amount of PLBY Group stock, both directly and indirectly. Direct holdings after the sales amounted to 2,093,545 shares. Additionally, Kohn has indirect stakes in the company through trusts and entities in which he has a beneficial interest. Specifically, shares held by Cold Springs Trust, Woodburn Dr LP, and Bircoll Kohn Family Trust were mentioned, with Kohn disclaiming beneficial ownership of these shares except to the extent of his pecuniary interest.
Investors often monitor insider trading activity, such as the buying and selling of company stock by executives and directors, for insights into the company's performance and management's perspective on the stock's valuation. The recent sales by PLBY Group's CEO represent a significant transaction by a key insider, providing market participants with additional data points to consider in their investment decisions.
InvestingPro Insights
PLBY Group, Inc. (NASDAQ:PLBY) CEO's recent stock sales may raise eyebrows among investors, especially when considering the broader financial health and market performance of the company. Here are some insights based on real-time data and InvestingPro Tips that could shed light on the context of these transactions:
InvestingPro Data indicates that PLBY Group's market capitalization currently stands at a modest $64.8 million. The company's revenue for the last twelve months, as of Q1 2024, was reported at $136.07 million, but it's important to note a significant decline in revenue growth during this period, amounting to -21.66%. This contraction aligns with an InvestingPro Tip that analysts anticipate a sales decline in the current year for PLBY Group.
Despite the revenue downturn, PLBY Group has maintained impressive gross profit margins of 66.56% over the same timeframe, which is a silver lining for the company's financial performance. However, the P/E Ratio (Adjusted) as of Q1 2024 stands at -2.27, reflecting the challenges the company faces in achieving profitability. This is further supported by another InvestingPro Tip that analysts do not expect the company to be profitable this year.
The stock price volatility of PLBY Group is evident from the six-month price total return, which shows a large uptick of 69.43%, yet the one-year price total return is at a stark -42.98%. This kind of volatility can be a double-edged sword for investors, offering both opportunities and risks.
For those interested in a deeper dive into PLBY Group's financials and stock performance, there are additional InvestingPro Tips available. These tips cover aspects such as the company's debt burden, cash burn rate, and stock price movements over various periods. Subscribers can unlock insights into whether the company's valuation implies a poor free cash flow yield and get a sense of the stock's trajectory over the last five years.
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