Ash Menachem, the Executive Vice President of Strategic and Legal Affairs at IDT Corp (NYSE:IDT), recently sold 6,557 shares of the company's Class B Common Stock. The transaction, which took place on October 21, 2024, was executed at an average price of $46.0008 per share, resulting in a total sale value of approximately $301,627.
Following this sale, Menachem holds 52,947 shares directly. Additionally, he retains 2,875 shares indirectly through a 401(k) plan, as of September 30, 2024. The direct holdings include a mix of vested and unvested restricted stock, with certain shares contingent upon performance criteria being met by February 2025.
In other recent news, IDT Corporation has reported a strong Q4 finish to its fiscal year 2024, with record adjusted EBITDA. The company's significant growth was driven by its NRS, BOSS Money, and net2phone segments. BOSS Money achieved over 40% year-over-year growth in both transaction volume and revenue, generating $4 million for the year. Additionally, net2phone added approximately 12,000 new seats, improving its adjusted EBITDA margin.
Looking forward, IDT Corporation is entering fiscal 2025 with robust momentum, focusing on growing profitable segments and creating long-term shareholder value. The company aims to grow BOSS Money's EBITDA to over $10 million and expects a moderated decline in Traditional Communications EBITDA to $5-6 million. Despite the expected decline in its Traditional Communications segment, the company anticipates consolidated revenue to slightly increase as growth businesses outpace declines in traditional services.
These recent developments underscore IDT Corporation's strategic focus on enhancing customer lifetime value and profitability. The company's future strategies include expanding into new verticals and enhancing product offerings, which it expects to drive further growth.
InvestingPro Insights
While Ash Menachem's recent sale of IDT Corp (NYSE:IDT) shares might raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, IDT's market capitalization stands at $1.16 billion, with a P/E ratio of 17.11 for the last twelve months as of Q4 2024. This relatively modest valuation is particularly interesting when considering the company's recent performance.
InvestingPro Tips highlight that IDT has been delivering strong returns across various timeframes. The company has shown a high return over the last year, with a impressive 59.8% price total return. This performance extends to the medium term, with a 23.42% return over the last three months and a 25.06% return over the last six months. Such consistent growth suggests that the company's strategies are bearing fruit, potentially justifying the executive's decision to realize some gains.
Moreover, IDT's financial health appears robust. An InvestingPro Tip notes that the company holds more cash than debt on its balance sheet, indicating a strong liquidity position. This financial stability is further underscored by the fact that IDT's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility and potential future investments.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into IDT's financial position and market outlook. These additional insights could be particularly valuable in contextualizing executive transactions and assessing the company's long-term prospects.
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