Qualys, Inc. (NASDAQ:QLYS) CEO and President Sumedh S. Thakar has sold a total of 6,000 shares of company stock, according to a recent SEC filing. The transactions, executed on June 3, 2024, were carried out at varying prices, resulting in a total value of over $957,441.
The sales were conducted in multiple tranches with prices ranging from $135.6382 to $141.04. The first sale involved 2,500 shares at an average price of $135.6382, while subsequent sales included 2,800 shares at $136.6937, 900 shares at $137.5018, 400 shares at $139.25, 200 shares at $139.72, and another 200 shares at the highest reported price of $141.04.
This series of sales occurred under a Rule 10b5-1 trading plan, which was previously set up by Thakar on February 28, 2024. Such plans allow company insiders to establish pre-arranged plans to sell stocks at a predetermined time to avoid accusations of insider trading.
Alongside the sales, Thakar also exercised options to acquire 7,000 shares of common stock at a price of $25.56 per share, totaling $178,920. This transaction was part of a derivative securities plan, which is separate from the direct stock sales. Following these transactions, Thakar's ownership in Qualys stands at 186,601 shares.
Investors and followers of Qualys will likely keep a close eye on these insider transactions as they assess the company's stock performance and leadership's view of the firm's value.
InvestingPro Insights
In light of the recent insider transactions at Qualys, Inc. (NASDAQ:QLYS), potential investors and current shareholders may find the latest metrics and analyst insights from InvestingPro particularly valuable. The company boasts a robust balance sheet, holding more cash than debt, which is a reassuring sign of financial stability. Additionally, Qualys has been recognized for its impressive gross profit margins, which have reached 81.09% over the last twelve months as of Q1 2024, reflecting efficient operations and strong pricing power.
Despite the CEO's sale of shares, it's worth noting that analysts have revised their earnings estimates upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Moreover, the stock is currently trading at a P/E ratio of 30.81, which is low relative to near-term earnings growth, suggesting that the stock could be undervalued.
InvestingPro data paints a picture of a company with solid fundamentals, as evidenced by a market capitalization of $4.94 billion and a PEG ratio of 0.61, hinting at potential growth at a reasonable price. Yet, it's important to consider that the stock has experienced a decline over the last month, with a 19.23% drop in price total return, which may capture the attention of value investors looking for an entry point.
For those interested in a deeper dive into Qualys' financials and future prospects, InvestingPro offers additional tips and insights. By visiting https://www.investing.com/pro/QLYS, readers can access a full suite of professional analysis tools. Moreover, for those looking to upgrade their experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 13 more InvestingPro Tips available, users can gain comprehensive knowledge to make well-informed investment decisions.
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