Squarespace, Inc. (NYSE:SQSP) director Jonathan D. Klein has sold a significant portion of his shares in the company, a recent filing with the Securities and Exchange Commission reveals. On May 13, Klein sold 100,000 shares of Class A Common Stock at a weighted average price of $43.15, totaling approximately $4.3 million.
The transactions were carried out through a series of trades, with prices ranging from $43.11 to $43.20 per share. Following this sale, Klein's remaining stake in the company is reported to be 504,133 shares of Class A Common Stock.
Investors should note that the sales reported were executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which Klein adopted on March 16, 2023. These plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
Squarespace, known for its website building and hosting services, has been a player in the technology sector, with its shares publicly traded on the New York Stock Exchange. The sale by a high-ranking insider may be of interest to current and potential shareholders, as it reflects transactions by those with intimate knowledge of the company.
The SEC filing was signed by attorney-in-fact Jessica Krasner on behalf of Klein, dated May 14, the day following the reported transactions.
InvestingPro Insights
As Squarespace (NYSE:SQSP) experiences insider trading activity, with director Jonathan D. Klein selling a considerable number of shares, investors may seek deeper financial insights to understand the company's recent performance and potential future trajectory. According to real-time data from InvestingPro, Squarespace has a market capitalization of $5.93 billion, reflecting the company's scale within the technology sector. Despite a negative P/E ratio of -785.64, indicating that the company is not currently profitable, the gross profit margin stands impressively at 76.78% for the last twelve months as of Q1 2024, showcasing Squarespace's ability to retain a significant portion of revenue after accounting for the cost of goods sold.
InvestingPro Tips highlight that analysts predict Squarespace's net income is expected to grow this year, which could be a sign of turning tides for the company's financial health. Additionally, the company's stock has shown a strong return over the last year, with a total price return of 53.76%, indicating a bullish trend for investors who held shares during this period. It's important to note that Squarespace does not pay a dividend to shareholders, which means that investors are likely relying on stock appreciation for returns.
For investors looking for an in-depth analysis of Squarespace, InvestingPro offers additional insights, with a total of 17 InvestingPro Tips available at https://www.investing.com/pro/SQSP. These tips provide a comprehensive look at the company's financial health and stock performance. To access these valuable insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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