Aaron Rollins (NYSE:ROL), the Executive Chairman of Airsculpt Technologies, Inc. (NASDAQ:AIRS), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Rollins sold a total of 109,213 shares over a three-day period from November 13 to November 15, 2024. The sales were executed at prices ranging from $6.5447 to $7.5289 per share, totaling approximately $757,722.
Following these transactions, Rollins retains ownership of 14,986,689 shares of Airsculpt Technologies. The sales were conducted in multiple trades, with the weighted average prices reflecting the range of prices at which the transactions occurred. Rollins has committed to providing detailed information about the sales upon request to the SEC, the issuer, or any security holder of the issuer.
In other recent news, AirSculpt Technologies reported a 9.1% decrease in third-quarter revenue, totaling $42.5 million, compared to the same period last year. However, the company remains optimistic, opening four new centers and achieving half of its cost savings goal for the second half of 2024. The company also increased its revenue guidance for 2024 to a range of $183 million to $189 million, while maintaining its adjusted EBITDA expectations.
Despite a 4.3% decrease in case volume and a slight decrease in average revenue per case, new centers are expected to exceed revenue targets. AirSculpt is also making strides in cost management, saving $500,000 in costs this half-year. The company is also in the process of searching for a permanent CEO.
AirSculpt is optimistic about its growth potential in the $11 billion market for body contouring and aims to operate over 100 centers in the medium term. The company is also exploring extended payment plans to potentially improve revenue per case. These are the latest developments in the company's ongoing efforts to improve lead conversion, successfully open new centers, and manage costs.
InvestingPro Insights
The recent insider selling by Aaron Rollins comes at a time when AirSculpt Technologies (NASDAQ:AIRS) is experiencing notable market volatility. According to InvestingPro data, the stock has seen a significant 25% drop in the past week, yet it has shown a strong 62.34% return over the last three months. This volatility aligns with an InvestingPro Tip indicating that AIRS stock price movements are quite volatile.
Despite the recent insider sale, there are some positive indicators for the company. An InvestingPro Tip suggests that net income is expected to grow this year, and analysts predict the company will be profitable this year. This is particularly noteworthy given that AIRS has not been profitable over the last twelve months, as another InvestingPro Tip points out.
From a valuation perspective, AIRS is currently trading at a high EBIT and EBITDA valuation multiple. The company's market capitalization stands at $402.86 million, with a price-to-book ratio of 4.57 as of the last twelve months ending Q3 2024. These metrics suggest that investors are pricing in significant growth expectations.
It's worth noting that AIRS does not pay a dividend to shareholders, which may be a consideration for income-focused investors. For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for AirSculpt Technologies, providing a deeper insight into the company's financial health and market position.
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