Robert Lowry, a director at Unusual Machines, Inc. (NYSE:UMAC), recently acquired 32,895 shares of the company's common stock in a transaction completed on October 30, 2024. The purchase, valued at approximately $50,000, was made at a price of $1.52 per share. This acquisition was part of a Securities Purchase Agreement, which also included warrants for additional shares. These warrants, however, are subject to a 180-day waiting period before they can be exercised. Following this transaction, Lowry's direct ownership in Unusual Machines stands at 73,502 shares.
In other recent news, Unusual Machines, Inc. has made several significant moves. The company has issued equity to an investor and compensated directors with restricted common stock and cash payments. In addition, Unusual Machines has limited its stock issuance and amended its bylaws, indicating a strategic approach to corporate governance.
The company's Chief Operating Officer, Andrew Camden, has seen a notable increase in his annual salary from $150,000 to $200,000. This development points to changes in the terms of his employment. On the financial front, Unusual Machines has restated its financial statements for fiscal years 2023 and 2022 due to errors identified during a re-audit conducted by its independent registered public accounting firm, Salberg & Company, P.A.
Furthermore, Unusual Machines has finalized transactions with Red Cat Holdings, involving a working capital adjustment related to the acquisitions of Rotor Riot and Fat Shark. The parties agreed to a $2.0 million adjustment, increasing the existing note payable from $2.0 million to $4.0 million. As a part of this agreement, Red Cat divested its investment in Unusual Machines by exchanging common shares for Series A preferred stock. These are the recent developments for Unusual Machines, Inc.
InvestingPro Insights
The recent insider purchase by Robert Lowry at Unusual Machines, Inc. (NYSE:UMAC) comes at a time when the company's stock is trading at a relatively low valuation. According to InvestingPro data, UMAC's Price to Book ratio stands at 0.51, indicating that the stock is trading below its book value. This aligns with one of the InvestingPro Tips, which notes that the company is "Trading at a low Price / Book multiple."
Despite the recent insider buying, investors should be aware of some financial challenges facing Unusual Machines. The company's revenue for the last twelve months as of Q2 2024 was $2.03 million, with a gross profit of $0.59 million. More concerning is the adjusted operating income of -$3.43 million, resulting in a negative operating income margin of -168.88%. This performance is reflected in another InvestingPro Tip, which states that the company is "Not profitable over the last twelve months."
It's worth noting that while the stock has seen a significant price increase of 37.19% over the past six months, it remains 66.25% below its 52-week high. This volatility, combined with the company's financial performance, underscores the importance of thorough research before making investment decisions.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on Unusual Machines, Inc. In fact, there are 5 more InvestingPro Tips available for UMAC, providing a deeper understanding of the company's financial health and market position.
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