Riva Bakal, the Chief Strategy Officer of Vivid Seats Inc. (NASDAQ:SEAT), recently sold 3,186 shares of the company's Class A common stock. The transaction, which took place on December 12, 2024, was executed at an average price of $3.44 per share, totaling approximately $10,959. The sale occurred as the stock trades near $3.49, significantly below its 52-week high of $7.17. According to InvestingPro analysis, Vivid Seats currently appears undervalued despite maintaining a GOOD financial health score. This sale was part of a mandatory "sell to cover" provision to satisfy tax obligations related to the vesting of restricted stock units (RSUs).
On December 11, Bakal exercised options to acquire 21,432 shares of Class A common stock through the vesting of RSUs. These transactions did not involve any cash outlay, as the RSUs were converted into shares at no cost. Following these transactions, Bakal holds a total of 139,015 shares directly.
In other recent news, Vivid Seats Inc. has been a focal point of recent financial analysis. The company's third quarter 2024 results reported revenues of $187 million, and despite a 13% year-over-year decline in marketplace gross order value (GOV), it maintained an 18% adjusted EBITDA margin. Analysts at DA Davidson recently adjusted their financial outlook on Vivid Seats, reducing the price target to $5.00 from the previous $5.50, but continued to recommend a Buy rating. Meanwhile, RBC Capital Markets adjusted its outlook on Vivid Seats, decreasing the price target to $6.00 from the previous $7.00, while maintaining a Sector Perform rating.
In addition to these financial adjustments, Vivid Seats has seen mixed signals in its online presence and sales compared to competitors, as noted by analysts at InvestingPro. Despite these mixed signals, the firm maintains a strong profitability with a 74% gross margin and generated $38.2 million in free cash flow over the last twelve months.
Recent developments also highlight a strategic partnership with Brandon Marshall's media platform and the launch of the SkyBox Drive pricing tool. Looking ahead, the company's management is focused on long-term growth and flexibility in changing market conditions, foreseeing a return to growth in 2025. Vivid Seats is also planning international expansion by the end of the year and cross-selling through Vegas.com.
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