Philp Daniel C., Co-CEO of Lendway, Inc. (NASDAQ:LDWY), recently acquired 32,000 shares of the company's common stock. The purchase, made on November 21, 2024, amounted to approximately $138,140, with prices ranging from $3.82 to $4.33 per share. Following this transaction, Daniel's total direct ownership of Lendway stock stands at 59,071 shares. The acquisition reflects a weighted average price of $4.3169 per share.
In other recent news, Lendway, Inc. has made significant amendments to its financial agreements to bolster its financial flexibility. The company has increased its revolving facility capacity from $6 million to $8 million until March 31, 2025, in an agreement with Associated Bank, N.A. This adjustment includes a temporary expansion of the definition of eligible inventory to include inventory located in the Netherlands. Additionally, Lendway has secured an extra $1 million in financing from Air T, Inc., raising its borrowing capacity to a total of $3.5 million.
In other recent developments, Lendway's Annual Meeting of Stockholders culminated in the unanimous re-election of its board of directors and approval of executive compensation. As part of leadership changes, the company appointed Mark R. Jundt and Daniel C. Philp as Co-Chief Executive Officers, and Elizabeth "Biz" McShane as Chief Financial Officer. Furthermore, Boulay PLLP was ratified as the independent registered public accounting firm for the upcoming fiscal year. These developments are part of the company's ongoing efforts to manage and invest in its operations.
InvestingPro Insights
Philp Daniel C.'s recent acquisition of Lendway, Inc. (NASDAQ:LDWY) shares comes at a time when the company's financial health presents a mixed picture. According to InvestingPro data, Lendway's market capitalization stands at $8.18 million, with a price-to-book ratio of 0.57 as of the last twelve months ending Q3 2024. This relatively low P/B ratio could suggest that the stock is undervalued, potentially aligning with Daniel's decision to increase his stake.
However, investors should note that Lendway faces some financial challenges. An InvestingPro Tip indicates that the company is quickly burning through cash, which may explain its negative operating income of $2.6 million for the same period. Additionally, Lendway is not profitable over the last twelve months, with a negative P/E ratio of -2.62.
On a more positive note, Lendway has shown a strong return over the last month, with a 20.41% price total return. This recent performance might have influenced Daniel's decision to acquire more shares. It's worth noting that InvestingPro offers 7 additional tips for Lendway, providing a more comprehensive analysis for investors considering this stock.
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