In a recent transaction, Red Oak Partners, LLC, a significant shareholder in Global Crossing Airlines Group Inc. (OTCMKTS:JETMF (OTC:JETMF)), increased its stake in the company with a purchase of shares worth approximately $8,600. The transaction, which took place on July 16, 2024, involved the acquisition of 20,000 shares at a price of $0.43 per share. Following the buy, Red Oak Partners now holds a total of 4,525,537 shares in the airline company.
The transaction was executed in multiple trades at the stated price, and the shares were acquired indirectly by The Red Oak Fund, LP, as indicated in the footnotes of the SEC filing. Red Oak Partners, LLC serves as the general partner of The Red Oak Fund, LP, with David Sandberg acting as the managing member and portfolio manager for the fund.
It is also noted that Red Oak Partners, LLC is the general partner of The Red Oak Long Fund, LP, which directly owns a separate portion of the shares. David Sandberg is the managing member of Red Oak Partners, LLC and the portfolio manager for the Long Fund as well.
The SEC filing includes a disclaimer by the reporting persons, stating that they disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest therein. The filing also clarifies that the report should not be considered an admission that the reporting person is the beneficial owner of the shares for the purposes of Section 16 of the Securities and Exchange Act of 1934 or for any other purpose.
Investors and market watchers often look to such transactions as indicators of confidence by major shareholders and company insiders. The acquisition by Red Oak Partners, LLC reflects ongoing investment activity in Global Crossing Airlines Group Inc., a company that operates in the scheduled air transportation sector.
For those interested in tracking the investment moves of significant shareholders like Red Oak Partners, LLC, such SEC filings provide valuable insight into the trading activities and holdings of these entities.
In other recent news, Global Crossing Airlines has reported a robust first quarter for 2024, with a 67% increase in revenue to $53.8 million and a 16-fold rise in EBITDA year-over-year. Despite this growth, the company recorded a net loss of $6.3 million for the quarter. The airline is refocusing its efforts on its primary business of narrow-body charter ACMI flying, discontinuing non-core ventures to streamline operations. With plans to expand its fleet to 20 aircraft by the summer and a strengthening relationship with a key government agency, Global Crossing Airlines is positioning itself for predictable and recurring business. However, the company has not provided formal guidance on reaching breakeven operations. While the company's operating expenses amounted to $58.4 million, it ended the quarter with $12.1 million in cash and restricted cash. These developments are part of the company's recent efforts to capitalize on market shifts and refocus its strategy for sustained profitability.
InvestingPro Insights
Amidst the recent investment by Red Oak Partners, LLC in Global Crossing Airlines Group Inc. (OTCMKTS:JETMF), it's worth noting the company's financial health and market performance. According to InvestingPro data, Global Crossing Airlines Group Inc. has a market capitalization of 26.93 million USD, which provides a sense of the company's size in the competitive airline industry landscape. Additionally, the company's revenue shows a strong growth trajectory with a 61.06% increase over the last twelve months as of Q1 2024, indicating potential expansion and scaling operations.
However, the financial metrics reveal challenges as well. The company's gross profit margin stands at 10.52%, which could signal efficiency issues in managing costs relative to revenue. Moreover, Global Crossing Airlines operates with a negative P/E ratio of -1.26, reflecting that it has not been profitable over the past year. This aligns with one of the InvestingPro Tips indicating that the company has not been profitable over the last twelve months. Another relevant InvestingPro Tip for potential investors is the significant debt burden that the company carries, which may pose difficulties in making interest payments.
For investors considering following in the footsteps of Red Oak Partners, it's important to weigh these financial considerations. The recent share price increase of 14.38% over the past week suggests that the market has reacted positively to recent events or expectations, but it's crucial to look at the broader financial context. For a deeper analysis and more InvestingPro Tips, visit https://www.investing.com/pro/JETMF. There are additional tips available, which can be accessed with the use of coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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