Ben Volkow, a director at Urgent.ly Inc. (NASDAQ:ULY), has sold a portion of his holdings in the company, according to a recent SEC filing. The transactions, carried out on September 9 and September 10, 2024, involved the sale of 11,077 shares of Urgent.ly's common stock for a total value exceeding $9,500.
The sales occurred at weighted average prices of $0.8594 and $0.8651 per share, with individual transactions ranging from $0.8151 to $0.9116. Following these transactions, Volkow's ownership in the company decreased, yet he still retains a significant stake of 501,874 shares.
Investors often monitor insider sales as they can provide insights into an executive's perspective on the company's current valuation and future prospects. It is important to note that the sales reported by Volkow were executed under a Rule 10b5-1 trading plan, which was adopted on November 20, 2023. Such plans allow company insiders to establish pre-planned transactions to sell a predetermined number of shares at a specified time, providing a legal defense against potential accusations of insider trading.
As per the SEC filing, Volkow has committed to providing further details regarding the specific prices of shares sold within the reported range upon request. The transactions were signed off by Timothy H. Huffmyer, by power of attorney, on September 11, 2024.
In other recent news, Urgent.ly, the provider of digital roadside and mobility assistance, has been in the spotlight due to several notable developments. The company's second-quarter results led Needham to maintain a Buy rating on Urgent.ly's stock, albeit with a lower price target of $2. This revision was influenced by factors such as a squeeze in gross margins and higher operational expenditures, which have prompted Urgent.ly to postpone its target for reaching non-GAAP operating income breakeven to the first quarter of 2025.
In addition to financial adjustments, Urgent.ly has made strides in expanding its partnerships. The company recently renewed and broadened its contracts with significant customers, which has offset some concerns following the loss of a major client. Furthermore, Urgent.ly has extended its services to Canada through a seven-year agreement with a leading global automotive OEM, underpinning the OEM's warranty roadside assistance program and post-warranty membership plans.
These developments come alongside Urgent.ly's reaffirmation of its commitment to long-term revenue growth, with an anticipated increase in the range of 20-30%. Urgent.ly also made headlines with the results of its 2024 Annual Meeting of Stockholders, which saw the election of Class I directors and the ratification of the company's independent auditors for the upcoming fiscal year. Despite the challenges faced, these recent developments indicate that Urgent.ly is active in pursuing growth and maintaining its investor relations.
InvestingPro Insights
Following the recent insider transactions at Urgent.ly Inc. (NASDAQ:ULY), where director Ben Volkow sold a portion of his holdings, it's pertinent to consider the company's financial health and market performance to understand the broader context. Urgent.ly's market capitalization stands at a modest $11.55 million, reflecting the market's current valuation of the company.
InvestingPro data reveals a striking P/E ratio of 0.16, which suggests that the stock is trading at a significant discount relative to its earnings. However, looking ahead with an adjusted P/E ratio for the last twelve months as of Q2 2024, the figure dips into the negative at -0.96, indicating potential concerns about future profitability. This aligns with an InvestingPro Tip that Urgent.ly operates with a significant debt burden and is quickly burning through cash, which could be factors influencing Volkow's decision to sell.
Revenue data further underscores the challenges faced by Urgent.ly, with a decline of 16.15% in the last twelve months as of Q2 2024. This contraction in revenue is coupled with a gross profit margin of 21.75%, which, while not negligible, is considered weak according to another InvestingPro Tip, possibly contributing to the company's unattractive free cash flow yield.
The stock's recent performance also paints a sobering picture. Urgent.ly's share price has experienced a significant downturn, with a 1-month total return of -21.82% and a 6-month total return of -73.12%. These figures are part of a longer-term trend, with the 1-year price total return standing at -83.83%, suggesting that investor confidence has been waning.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available, offering insights into Urgent.ly's financials and market performance. These tips can be accessed through the InvestingPro platform, which provides a more detailed examination of the metrics influencing the company's stock price and future outlook.
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