WM Technology, Inc.'s (NASDAQ:MAPS) Chief Technology Officer, Grazier Duncan, has sold a portion of his company stock, according to the latest filings. The transaction, which took place on June 7, 2024, involved the sale of 35,272 shares at a weighted-average price of $0.9795 per share, resulting in a total sale value of $34,548.
The shares were sold in a range of prices between $0.9901 and $0.9759. This sale was made to cover applicable tax withholding obligations that arose from the vesting of restricted stock units, as well as to cover any related brokerage commission fees.
Following the sale, Duncan still retains a substantial stake in the company, with 694,654 shares of Class A common stock remaining in his possession. This indicates a continued investment in the company's future despite the recent sale.
Investors and followers of WM Technology will be observing the CTO's transactions closely, as executive stock sales can sometimes provide insights into the leadership's perspective on the company's valuation and future prospects.
WM Technology, known for its services in prepackaged software, has been a player in the technology sector, with its stock trading under the ticker MAPS. The company, formerly known as Silver Spike Acquisition Corp., has its headquarters in Irvine, California.
For those interested in the specifics of the transaction, further details can be provided upon request to the SEC, the issuer, or any security holder of the issuer. Duncan's recent move is part of the regular financial activities executives undertake, and it has been duly reported in compliance with SEC regulations.
In other recent news, WM Technology, Inc., the parent company of Weedmaps, is facing a Nasdaq compliance issue due to delays in filing its required financial reports. The delay, attributed to a recent change in executive finance leadership, has impacted both the quarterly report for the period ending March 31, 2024, and the annual report for the year ending December 31, 2023. Despite this, the company is diligently working towards finalizing its financial statements and intends to file the overdue reports promptly.
WM Technology has also revealed preliminary financial results for 2023 in light of the delay. The company expects revenue to fall between approximately $185 million and $195 million, with an adjusted EBITDA anticipated to be in the range of $33 million to $37 million. The firm reported an approximate 20% increase in cash on hand, with $34 million as of December 31, 2023, up from $28.6 million the previous year.
These developments are recent, and while the company is working to regain compliance, they have also identified material weaknesses in their internal controls over financial reporting. These weaknesses pertain to the maintenance of control environment components, risk assessment, mitigation controls, and IT controls. Nevertheless, the company remains optimistic about future opportunities with changing federal attitudes towards cannabis legalization.
InvestingPro Insights
The recent stock sale by WM Technology's Chief Technology Officer, Grazier Duncan, comes at a time when the company's financial metrics and market performance present a mixed picture. According to InvestingPro data, WM Technology, Inc. (NASDAQ:MAPS) has a market capitalization of $91.59 million. Despite a challenging market, the company boasts an impressive gross profit margin of 93.9% for the last twelve months as of Q1 2024, underscoring its ability to maintain profitability at the core operational level.
However, the company's valuation reflects concerns as well. The P/E ratio stands at -14.8, indicating that investors may be expecting lower profitability in the near future. Yet, analysts predict the company will turn profitable this year, which could signal a potential turnaround for the company's financial health. An InvestingPro Tip points to the company's high Price / Book multiple of 7.95, suggesting that the stock is trading at a premium compared to its book value, a factor that investors often consider when assessing whether a stock is over or undervalued.
It is also noteworthy that WM Technology's stock has experienced a significant decline over the last month, with a 15.79% drop in price total return. This could provide a buying opportunity for those who believe in the company's long-term potential, especially considering that the stock has fared better over a six-month period with a 19.27% price total return.
For investors interested in a deeper dive into WM Technology's performance and future outlook, there are additional InvestingPro Tips available. These tips can provide valuable guidance on the company's shareholder yield, free cash flow yield, and debt levels. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are 7 additional tips listed in InvestingPro that could further inform your investment decisions regarding WM Technology.
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