Urgent.ly Inc. (NASDAQ:ULY) Director Ben Volkow has recently sold a portion of his holdings in the company, according to the latest SEC filings. The transactions took place on two separate occasions within the first ten days of June 2024, with the total value of the shares sold amounting to over $4,468.
On June 7, 2024, Volkow sold 2,000 shares of Urgent.ly Inc.'s common stock at a weighted average price of $1.7655. The shares were sold in multiple transactions at prices that ranged from $1.685 to $1.90. Following this transaction, the director still owned 516,466 shares of the company.
A few days later, on June 10, Volkow continued to divest, selling an additional 500 shares. This time, the weighted average price was slightly higher at $1.8752, with individual sales prices ranging from $1.77 to $1.94. After this sale, Volkow's stake in Urgent.ly Inc. was reduced to 515,966 shares.
The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which Volkow had adopted on November 20, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on inside information.
Investors and followers of Urgent.ly Inc. will likely keep an eye on insider transactions as they can provide valuable insights into the company's health and the sentiment of its leaders. With the director's recent sales, market watchers may be curious about the strategic moves behind these transactions and what they might indicate about the future of the company.
In other recent news, Urgent.ly, the firm specializing in roadside assistance technology, experienced a shift in its stock target. Notable investment firm, Needham, cut the price target for Urgent.ly to $5.00 from the previous $7.00, while maintaining a Buy rating on the stock. This adjustment is a result of recent developments and Urgent.ly's fourth-quarter results. The company's financial performance and outlook, including the significant gain of a new client from the top 5 global OEM, and the loss of a legacy customer contributing to 25% of its revenues, instigated this change. Needham's new price target is based on a multiple of 7.5 times the projected adjusted EBITDA for 2026, a decrease from the prior multiple of 10 times. Despite a reduced revenue base, Urgent.ly has reiterated its guidance, forecasting positive non-GAAP earnings in the third quarter of 2024 and reaffirming its longer-term growth and margin targets. These recent developments indicate the company's confidence in its strategic direction and financial health.
InvestingPro Insights
As Urgent.ly Inc. (NASDAQ:ULY) faces scrutiny over insider transactions, real-time data from InvestingPro offers a broader perspective on the company's financial health and market performance. The director's recent share sales coincide with a challenging period for Urgent.ly, as reflected in key financial metrics.
InvestingPro Data reveals a market capitalization of $26.04M, suggesting a relatively small player in its sector. The company's revenue for the last twelve months as of Q1 2023 stands at $175.17M, yet it has experienced a decrease of 11.09% in revenue growth during the same period. Despite a notable 10.86% return over the last week, the share price has been on a downward trend with a significant 63.53% drop over the past year.
Two InvestingPro Tips highlight critical concerns for potential investors. Urgent.ly has been quickly burning through cash, which could raise questions about its long-term sustainability. Additionally, the company's short-term obligations exceed its liquid assets, indicating potential liquidity risks that could impact its ability to meet immediate financial obligations.
For those interested in a deeper analysis, InvestingPro offers additional insights. There are 12 other InvestingPro Tips available for Urgent.ly Inc., which can be accessed by visiting: https://www.investing.com/pro/ULY. These tips could further inform investment decisions by providing a comprehensive understanding of the company's valuation, profitability, and market performance trends.
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