Wag! Group Co. (NYSE:PET) Chief Customer Officer, David Cane, recently sold shares in the company, according to a new SEC filing. The transaction involved the sale of 13,455 shares of common stock at a weighted average price of $0.72, totaling approximately $9,687.
The shares were sold over a series of transactions between September 9th and September 11th, 2024, with individual sale prices ranging from $0.70 to $0.79. The sales were part of a "sell to cover" transaction to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs), as mandated by the company's incentive plans.
Following the sale, Cane retains ownership of 550,189 shares of Wag! Group Co. stock. The company has specified that these sales do not represent discretionary trading by Cane but are instead required sales for tax purposes.
Investors and stockholders interested in the specific breakdown of the sales prices are entitled to request detailed information from Cane regarding the number of shares sold at each price within the specified range.
Wag! Group Co., known for its personal services, is based in San Francisco, California, and operates under the ticker symbol PET on the New York Stock Exchange.
In other recent news, pet care service provider, Wag!, reported a 6% decrease in revenues, landing at $18.7 million for the second quarter of 2024. Despite the drop in revenue, the company saw a record increase in adjusted EBITDA to $1.6 million. This decrease in revenue was a strategic decision by Wag! to cut marketing expenses and boost short-term profitability.
In addition to these financial results, Wag! completed a $10 million public offering, with the net proceeds aimed at paying down a significant portion of its debt. The company is prioritizing debt refinancing, aiming for an 8-12% EBITDA margin by 2025. As part of its growth strategy, Wag! plans to expand its product offering, form new partnerships, and launch a new WeCompare platform.
These are recent developments for Wag!, which is focusing on generating positive free cash flow in the future and maintaining a healthy adjusted EBITDA margin. The company's 2024 revenue forecast remains between $92 million and $102 million, with adjusted EBITDA projected to fall within the $4 million to $8 million range. Wag! is optimistic about its future, despite the expected challenges in the marketing environment.
InvestingPro Insights
Amidst the recent sale of shares by Wag! Group Co.'s (NYSE:PET) Chief Customer Officer, David Cane, the company's financial health and stock performance metrics provide additional context for investors. An InvestingPro Tip highlights the company's "impressive gross profit margins," which stand at a robust 79.58% for the last twelve months as of Q2 2024. This figure suggests a strong ability to convert revenue into gross profit, a positive sign for the company's operational efficiency.
However, Wag! Group Co. is grappling with challenges as well. The company has been "quickly burning through cash," which is a point of concern highlighted by another InvestingPro Tip. This may be reflected in the company's negative operating income margin of -5.04% and an adjusted P/E ratio of -3.27, indicating that profitability is currently out of reach.
InvestingPro Data also reveals that the stock has experienced a significant downturn, with a 1-month price total return of -19.35% and a 6-month price total return of -63.59% as of the same period. These figures underscore recent market sentiment and performance issues, aligning with the InvestingPro Tip that the stock has "taken a big hit over the last week."
For investors looking to dive deeper into Wag! Group Co.'s financials and stock performance, InvestingPro offers additional tips and insights. Currently, there are 14 more InvestingPro Tips available for PET, which can be found at InvestingPro.
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