In a recent transaction, Joo Mi Kim, the Chief Financial Officer of Qualys, Inc. (NASDAQ:QLYS), sold a total of 634 shares of the company's common stock. The sales were conducted at prices ranging from $120.81 to $124.28, amounting to over $77,000 in total value.
The transactions took place on October 7, 2024, and were reported in a filing with the Securities and Exchange Commission made public on the following day. According to the details provided, the shares were sold in four separate transactions with prices per share varying slightly, indicating a weighted average sale price for each batch.
The first transaction involved the sale of 251 shares at an average price of $120.81, followed by 63 shares at an average price of $121.26. The third batch consisted of 151 shares sold at an average price of $122.52, and the final transaction included 169 shares at an average price of $124.28.
Following these sales, the CFO's remaining ownership in Qualys stands at 85,942 shares of common stock, as indicated by the post-transaction amounts listed in the filing. The sales were executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which was adopted by Kim on August 28, 2023. This plan allows insiders to sell shares over a predetermined period of time to avoid concerns about transactions based on the current market value or inside information.
Investors often monitor insider sales as they can provide insights into an executive's view of the company's current valuation and future prospects. However, it is also common for executives to sell shares for personal financial planning, diversification, and other non-company related reasons.
Qualys, Inc., headquartered in Foster City, California, specializes in cloud security and compliance solutions, serving a broad range of industries with its platform.
In other recent news, cybersecurity firm Qualys, Inc. reported an 8% year-over-year increase in revenue for the second quarter of 2024, reaching $148.7 million. The company anticipates an 8-10% increase in full-year revenue for 2024, projecting figures between $601.5 million and $608.5 million. Amid these financial developments, Qualys has unveiled the first cloud-based Risk Operations Center with Enterprise TruRisk Management, aiming to streamline risk management in IT environments.
Analysts from TD Cowen have adjusted their outlook on Qualys shares twice due to decreased demand for Qualys's standalone Vulnerability Management offering and increased competition from Crowdstrike's new tool. Despite these adjustments, TD Cowen maintains a Hold rating on the stock. Other analysts, including those from Canaccord Genuity, RBC Capital, and JPMorgan, have also revised their price targets for Qualys.
In terms of product development, Qualys has launched TruRisk Eliminate, a tool aimed at enhancing vulnerability management, and plans to expand its GovCloud platform. These recent developments highlight the company's ongoing efforts to innovate and grow amid a competitive cybersecurity landscape.
InvestingPro Insights
To provide additional context to the recent insider sale by Qualys CFO Joo Mi Kim, let's examine some key financial metrics and insights from InvestingPro.
Qualys currently has a market capitalization of $4.58 billion, with a P/E ratio of 26.84. This valuation comes amid a challenging period for the company's stock, which has experienced a significant decline of 26.72% over the past six months. In fact, Qualys is trading near its 52-week low, with the current price at just 60.32% of its 52-week high.
Despite the recent stock performance, Qualys maintains a strong financial position. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, indicating financial stability. This could provide reassurance to investors concerned about the insider sale.
Another positive sign is the company's impressive gross profit margins, which stand at 81.5% for the last twelve months as of Q2 2024. This demonstrates Qualys' ability to maintain pricing power and efficiency in its operations, even in a competitive cloud security market.
It's worth noting that 18 analysts have revised their earnings upwards for the upcoming period, suggesting a potentially positive outlook for Qualys' near-term financial performance. This optimism is further supported by the company's solid revenue of $581.08 million over the last twelve months, with a growth rate of 10.83%.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond what's covered here. In fact, there are 8 more InvestingPro Tips available for Qualys, which could provide valuable perspective on the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.