In a recent transaction, Alclear Investments II, LLC, a significant shareholder and reported director by deputization of Clear Secure, Inc. (NYSE:YOU), sold a total of 122,579 shares of the company's Class A Common Stock for an aggregate price of approximately $3.8 million. The shares were sold at a weighted average price of $31.04, with individual sales ranging from $31.00 to $31.10.
The transaction, which took place on September 16, 2024, was carried out automatically under a Rule 10b5-1 trading plan that had been previously adopted on March 12, 2024. Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stocks in a way that avoids accusations of insider trading.
According to the details provided in the SEC filing, the sale resulted in Alclear Investments II holding zero shares of Class A Common Stock following the transaction. This is due to the conversion of shares of Class B Common Stock into Class A Common Stock on a one-for-one basis, as stipulated by Clear Secure's Certificate of Incorporation, which were then used to settle the sale.
In addition to the sale, the filing also indicated exchanges of non-voting common units of Alclear Holdings, LLC for Clear Secure's Class B Common Stock on a one-for-one basis, as per the terms of the Exchange Agreement dated June 29, 2021. These exchanges did not result in any economic transaction as they were related to internal restructuring of ownership interests.
Clear Secure, Inc., known for its services in prepackaged software, is incorporated in Delaware and has its business address in New York, NY. The transactions and exchanges reported in this SEC Form 4 filing provide a glimpse into the ownership changes and insider transactions of the company.
In other recent news, Clear Secure, Inc. reported robust financial growth in its fiscal second quarter for 2024. There was a 25% increase in revenues and a 137% rise in adjusted EBITDA. The company added a record 2.3 million members during the quarter, contributing to the growth in its CLEAR Travel and CLEAR Verified services. Clear Secure also saw substantial growth in cash flow, with operations and free cash flow up 65% and 90% respectively, prompting it to raise its free cash flow growth guidance for the fiscal year to at least 40%.
In addition to these financial highlights, Clear Secure announced an executive transition. Kasra Moshkani, the Executive Vice President, Verified, is set to leave the company to pursue other opportunities. The company has begun the process to find a suitable replacement.
Furthermore, the company launched new technology enhancements and CLEAR Perks for CLEAR Plus members, announced an airport innovation campaign, and expects significant growth in various sectors, including healthcare and financial services. Clear Secure's recent acquisition of Sora is anticipated to positively impact partner services, and the company is optimistic about the growth of TSA PreCheck. These are recent developments that highlight the company's continued focus on innovation and customer experience.
InvestingPro Insights
Clear Secure, Inc. (NYSE:YOU) has recently been in the spotlight due to insider transactions. For investors following the company's stock, the latest metrics from InvestingPro can offer additional insights into its financial health and market performance.
InvestingPro Data shows that Clear Secure has a market capitalization of $4.53 billion and is trading at a P/E ratio of 41.91, which is adjusted to 41.65 for the last twelve months as of Q2 2024. This suggests a relatively high valuation based on earnings. However, the company's revenue growth has been impressive, with a 32.44% increase over the last twelve months as of Q2 2024.
An InvestingPro Tip highlights that Clear Secure is trading at a high Price / Book multiple of 29.45, which could indicate that the stock is valued richly in terms of its net assets. This is a crucial factor for investors to consider, especially when comparing the valuation with other companies in the prepackaged software industry.
Additionally, the stock has delivered a significant return over the last three months, with a price total return of 76.36%. This performance is complemented by a strong one-year price total return of 66.73%, showcasing the stock's robust growth in the medium to long term.
For investors seeking more in-depth analysis, there are 15 additional InvestingPro Tips available on the platform, which can be accessed for Clear Secure, Inc. at https://www.investing.com/pro/YOU. These tips may provide valuable guidance on whether the current stock price reflects the company's fundamental value and future growth prospects.
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