In a recent transaction, Kenneth L. Cornick, the President and Chief Financial Officer of Clear Secure, Inc. (NYSE:YOU), sold a total of 122,579 shares of Class A Common Stock at an average price of $31.04, resulting in a total sale value of approximately $3.8 million. This sale took place on September 16, 2024, as reported in a recent filing.
The sale was executed under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. The shares were sold in multiple transactions at prices ranging from $31.00 to $31.10. Cornick has stated that he can provide full information regarding the number of shares sold at each separate price within the range, if requested by the issuer, any security holder, or the SEC staff.
Following this transaction, Cornick no longer holds any shares of Class A Common Stock, as they were converted from Class B Common Stock and then used to settle the sale. According to the company's Certificate of Incorporation, each share of Class B Common Stock automatically converted into a share of Class A Common Stock on a one-for-one basis.
It's also noted that shares of Class D Common Stock, which carry no economic rights but have 20 votes per share, are issued in an equal amount to the number of non-voting common units of Alclear Holdings, LLC held. These units, along with a corresponding number of shares of Class D Common Stock, were exchanged for Class B Common Stock on a one-for-one basis under the terms of the Exchange Agreement.
Clear Secure, Inc. specializes in prepackaged software services and is headquartered in New York. The company's stock is publicly traded under the ticker symbol YOU on the New York Stock Exchange.
In other recent news, Clear Secure, Inc. disclosed the upcoming departure of Kasra Moshkani, the Executive Vice President, Verified. Moshkani, who has significantly contributed to the company's operations since 2021, is set to leave on September 18, 2024, to pursue other opportunities. Clear Secure has expressed gratitude for Moshkani's contributions and is in the process of finding a suitable replacement.
On the financial front, Clear Secure reported a strong fiscal second quarter for 2024, with 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 robust growth in Clear Travel and Clear Verified.
Along with this, Clear Secure also launched new technology enhancements and Clear Perks for Clear Plus members. The company's recent acquisition of Sora is anticipated to positively impact partner services, and they are optimistic about the growth of TSA PreCheck. These are recent developments that highlight Clear Secure's continued focus on innovation and customer experience.
InvestingPro Insights
Clear Secure, Inc. (NYSE:YOU) has been demonstrating a robust financial performance with notable metrics that are of interest to investors. The company's market capitalization currently stands at $4.53 billion, reflecting a significant presence in the prepackaged software services sector. Despite the recent insider sale by President and CFO Kenneth L. Cornick, the company's fundamentals may offer a broader perspective on its financial health and future prospects.
One notable InvestingPro Tip for Clear Secure is that the company holds more cash than debt on its balance sheet, which is a positive sign of financial stability and may provide it with the flexibility to navigate market uncertainties or invest in growth opportunities. Additionally, the company's net income is expected to grow this year, indicating potential for increased profitability and shareholder value.
From the data provided by InvestingPro, Clear Secure's revenue growth over the last twelve months as of Q2 2024 stands at an impressive 32.44%, showcasing the company's ability to expand its business. The gross profit margin during the same period was a strong 63.03%, suggesting efficient cost management and a solid competitive edge in its industry. Investors might also be intrigued by the stock's recent performance, with a 1-week price total return of 10.96% and a 3-month price total return of 76.36%, signaling robust investor confidence and market momentum.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available, providing insights into other aspects of the company's performance and stock valuation. Clear Secure is currently trading at a high Price / Book multiple of 29.45, which may indicate expectations of future growth or a premium placed on the company's assets and brand.
Interested investors can find further InvestingPro Tips by visiting https://www.investing.com/pro/YOU, which offer a comprehensive look at the company's financials, including analysts' revisions, stock price volatility, and valuation multiples. These tips can help investors make more informed decisions regarding their investment in Clear Secure, Inc.
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