Peter Hirsch, the Chief Product & Technology Officer of Zuora Inc . (NYSE:ZUO), recently sold 52,167 shares of company stock, resulting in a total transaction value of approximately $502,702. The shares were sold at a weighted average price of $9.6364, with individual transactions occurring at prices ranging from $9.41 to $9.89.
The sale, which took place on July 3, 2024, was part of a tax liability settlement connected to the vesting of restricted stock units under Zuora's 2018 Equity Incentive Plan. According to a footnote in the filing, the shares sold by Hirsch were aggregated with those of other plan participants and disposed of over a three-day period ending on the transaction date.
Following the sale, Hirsch's remaining stake in the company consists of 72,833 shares of Class A Common Stock. The transaction was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission, which provides transparency on the stock trading activities of the company's insiders.
Investors often monitor such insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is important to note that insider selling can occur for various reasons and may not necessarily reflect a negative outlook.
Zuora Inc., headquartered in Redwood (NYSE:RWT) City, California, specializes in providing cloud-based software that helps companies manage subscription-based services. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol ZUO.
In other recent news, Zuora Inc. reported a 10% year-over-year increase in subscription revenue for its first quarter of the fiscal year 2025, hitting a record high in adjusted free cash flow. Additionally, the company announced its intention to acquire Sub(x), an AI technology provider for digital publishing and media companies, aiming to enhance its paywall capabilities. In the recent stockholders meeting, Kenneth A. Goldman, Joseph Osnoss, and Tien Tzuo were elected as Class III directors, while KPMG LLP was ratified as the independent registered public accounting firm for the fiscal year ending January 31, 2025. Furthermore, Baird increased its price target for Zuora shares to $10.00, maintaining a neutral rating, while Lake Street Capital Markets raised its price target for Zuora to $13.00, reiterating a buy rating. These recent developments highlight the company's strategic moves and solid financial performance.
InvestingPro Insights
Following the recent insider sale by Zuora Inc.'s Chief Product & Technology Officer, investors might be curious about the company's financial health and future prospects. Zuora, a cloud-based software provider for subscription services, holds a market capitalization of $1.42 billion. Despite not having turned a profit over the last twelve months, InvestingPro Tips indicate that analysts are optimistic, predicting the company will become profitable this year. This is a positive signal for investors considering the company's growth trajectory.
From a liquidity standpoint, Zuora appears to be on solid ground. The company holds more cash than debt, a reassuring sign of financial stability. Additionally, Zuora's liquid assets surpass its short-term obligations, which suggests the company is well-positioned to manage its liabilities in the near term. However, investors should be aware that the stock has been quite volatile, with a price/book ratio of 10.25 as of the last twelve months ending Q1 2023, indicating a potentially higher valuation compared to its book value.
On the revenue front, Zuora reported a growth of 7.97% in revenue during the last twelve months as of Q1 2023, with a gross profit margin of 69.05%. These figures demonstrate the company's ability to generate income from its sales effectively. For those interested in more in-depth analysis and additional InvestingPro Tips, including whether Zuora's current stock price reflects its fair value, visit InvestingPro. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With 7 additional tips listed on InvestingPro, investors can gain a comprehensive understanding of Zuora's financials and market position.
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