Urgent.ly Inc. (NASDAQ:ULY) director Ben Volkow has sold a portion of his company shares, according to recent filings with the Securities and Exchange Commission. The transactions, which took place on June 5 and June 6, resulted in Volkow selling a total of 2,000 shares at prices ranging from $1.75 to $1.965 per share. The combined value of the sales exceeded $3,800.
The first transaction on June 5 involved the sale of 1,400 shares at an average price of $1.9015, while the second on June 6 saw 600 shares sold at an average price of $1.904. Following these transactions, Volkow retains ownership of 518,466 shares of Urgent.ly Inc.
The sales were conducted under a Rule 10b5-1 trading plan, which Volkow had adopted on November 20, 2023. This plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing a defense against potential allegations of insider trading.
Investors and potential shareholders often monitor insider sales as they can provide insights into an insider’s perspective on the company's current valuation and future prospects. However, it's important to note that insider transactions are not always indicative of company performance and can be motivated by various personal financial considerations.
The recent filings give a detailed account of Volkow's transactions, ensuring transparency and adherence to regulatory requirements. Urgent.ly Inc. and its shareholders can request additional details about the specific prices at which the shares were sold within the reported range.
Timothy Huffmyer, by power of attorney, signed the SEC filing on behalf of Volkow on June 7, 2024.
In other recent news, Urgent.ly, a company specializing in roadside assistance technology, has experienced some significant changes. After the company's fourth-quarter results and recent developments, investment firm Needham has adjusted its price target for Urgent.ly from $7.00 to $5.00, while maintaining a Buy rating. The adjustment was prompted by Urgent.ly's financial performance and outlook, which included both the acquisition of a new customer from a top 5 global OEM and the loss of a legacy customer that represented about 25% of the company's revenues.
Needham has acknowledged the potential for growth due to the new customer relationship but also noted the increased uncertainty due to the loss of the significant legacy customer. The revised price target is based on a multiple of 7.5 times the projected adjusted EBITDA for 2026, a decrease from the previous multiple of 10 times. Despite these changes, Urgent.ly has reiterated its guidance, predicting positive non-GAAP earnings in the third quarter of 2024 and reaffirming its longer-term growth and margin targets. These are recent developments in the company's journey.
InvestingPro Insights
As Urgent.ly Inc. (NASDAQ:ULY) faces scrutiny following insider sales by director Ben Volkow, investors are considering a range of financial metrics to assess the company's current standing and future potential. Urgent.ly's market capitalization stands at a modest $26.04 million, reflecting investor valuation of the company. A notable point of concern highlighted by InvestingPro Tips is the company's rapid cash burn, which is a critical factor for stakeholders to watch, given its implications for long-term sustainability.
The company's revenue has seen a decline over the last twelve months, with a reported decrease of -11.09%, which aligns with analyst anticipations of a sales decline in the current year. This contraction in revenue is further exemplified by a -19.13% quarterly revenue growth as of Q1 2024. Gross profit margins also appear to be under pressure at 21.68%, underscoring some of the challenges Urgent.ly is facing in maintaining profitability.
From a valuation perspective, Urgent.ly is trading at a low revenue valuation multiple, which might attract investors looking for undervalued opportunities. However, this must be balanced against the company's poor free cash flow yield, as indicated by InvestingPro Tips. Additionally, the stock has experienced a significant price drop over the last year, with a -63.53% one-year price total return, which may raise concerns about its short-term performance and market sentiment.
For investors seeking a more comprehensive analysis of Urgent.ly Inc., InvestingPro offers additional insights and tips that could help in making informed decisions. By using the coupon code PRONEWS24, new subscribers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to more than 10 additional InvestingPro Tips for a deeper dive into the company's financial health and future prospects.
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