In a recent transaction, Zevia PBC's (NYSE:ZVIA) Chief Accounting Officer, Mikhail Hany, sold 3,723 shares of the company's Class A Common Stock. The sale, which took place on March 25, 2024, amounted to a total of $3,878, with the shares being sold at a weighted average price of $1.0419. The transaction was part of a "sell to cover" operation to satisfy tax withholding obligations related to the settlement of restricted stock units (RSUs).
The shares were sold in multiple transactions with prices ranging from $1.03 to $1.05. Following the sale, Mikhail Hany's ownership in the company stands at 47,449 shares of Class A Common Stock, which includes 30,408 RSUs. These RSUs are subject to various vesting schedules and settlement dates, with some becoming fully vested and due for settlement in January 2025, and others vesting annually from their respective grant dates in March 2022 and March 2023.
The transaction was executed in compliance with the obligations arising from the RSUs and is not indicative of a discretionary trade by the reporting person. The sale was necessary to cover tax liabilities and does not reflect a change in the executive's view of the company's potential or performance.
Investors monitoring insider transactions may note that such sales are not uncommon and are often part of compensation packages for executives, which may include stock-based components that necessitate selling shares to cover associated tax liabilities.
InvestingPro Insights
Zevia PBC's (NYSE:ZVIA) recent insider transaction coincides with a challenging period for the company's stock performance. According to real-time data from InvestingPro, Zevia's market capitalization stands at a modest $75.44 million, reflecting the company's current valuation in the market. The Price to Earnings (P/E) ratio, an indicator of investor expectations about future earnings, is negative at -2.44, and when adjusted for the last twelve months as of Q4 2023, it further declines to -3.45, suggesting that the company has been earning negative profits.
InvestingPro Tips highlight several concerns for Zevia, including the fact that the company is quickly burning through cash and analysts do not anticipate it will be profitable this year. Moreover, the stock's Relative Strength Index (RSI) suggests it is in oversold territory, which could indicate a potential rebound or further declines depending on market sentiment and future company performance.
Despite a challenging outlook with a significant price drop of over 70% in the past year, Zevia holds more cash than debt on its balance sheet, which could provide some financial flexibility in the near term. Additionally, the company's liquid assets exceed its short-term obligations, indicating a level of short-term financial stability. However, with a poor free cash flow yield as implied by its valuation, investors may exercise caution.
For those looking to delve deeper into Zevia's financial health, InvestingPro offers an array of additional tips that could shed light on the company's future prospects. Readers can explore more by visiting InvestingPro and can benefit from an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 13 additional InvestingPro Tips available for Zevia, providing a comprehensive analysis for informed decision-making.
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