Nicole D'Amato, the Chief Legal Officer of InnovAge Holding Corp. (NASDAQ:INNV), has sold a total of $71,139 worth of company stock, according to recent SEC filings. The transactions, which took place on September 16 and 17, involved the sale of company common stock at prices ranging from $5.83 to $6.13 per share.
On the first day of transactions, D'Amato sold 4,372 shares at a weighted average price of $5.95. The following day, an additional 7,521 shares were sold at an average price of $6.00. These sales were executed as part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.
The SEC filing included footnotes indicating that the prices reported were weighted averages and that the shares were sold in multiple transactions at various prices within the stated ranges. D'Amato has committed to providing full information regarding the number of shares sold at each separate price upon request by the Issuer, any security holder of the Issuer, or the SEC staff.
Following the sale, D'Amato still holds a substantial number of shares in InnovAge Holding Corp., with the SEC report showing 233,274 shares owned after the transactions were completed.
Investors often monitor insider buying and selling as it can provide insights into the executive's view of the company's current valuation and future prospects. However, the use of a 10b5-1 plan indicates that these sales were pre-planned and not necessarily a direct response to current market conditions or company performance.
In other recent news, InnovAge announced its Fourth Quarter and Fiscal Year 2024 financial results, revealing a steady revenue increase and an optimistic outlook for fiscal year 2025. The company reported a 3.3% quarterly revenue increase to $199 million and an 11% year-over-year increase to $764 million. For fiscal year 2025, InnovAge projects a rise in participants and improved profitability, despite some operational challenges.
The company served approximately 7,020 participants as of June 30, 2024, and anticipates a participant census of 7,300 to 7,750 for the upcoming year. Revenue for fiscal year 2025 is projected to be between $815 million and $865 million, with an adjusted EBITDA forecasted to be between $24 million and $31 million.
Despite a net loss of $23.2 million for fiscal 2024, InnovAge's year-over-year growth reached 9.6%, with a 30.4% increase in the center-level contribution margin. The company is investing in business improvements and upgrading financial systems to Oracle (NYSE:ORCL), demonstrating a commitment to high-quality care and responsible growth. These are recent developments that indicate a promising future for InnovAge.
InvestingPro Insights
As InnovAge Holding Corp. (NASDAQ:INNV) makes headlines with insider stock sales, it's worth diving into the company's financial health and market performance to provide investors with a broader context. According to recent data, InnovAge has a market capitalization of approximately $817.79 million, reflecting its standing in the market. Despite the company's moderate level of debt, an InvestingPro Tip highlights that analysts do not expect InnovAge to be profitable this year. This aligns with the company's current negative P/E ratio of -38.73, which suggests that investors are not expecting immediate earnings growth.
However, it's not all challenging news. InnovAge has demonstrated a strong return over the last three months, with a 40.66% price total return, indicating a robust short-term performance that may catch the interest of traders and investors alike. Additionally, the company has experienced a significant 27.96% price uptick over the last six months, which may be of interest to those looking for momentum in stock performance.
On the operational front, InnovAge's revenue growth is notable, with an 11.01% increase over the last twelve months as of Q4 2024. This growth is further exemplified by a quarterly revenue growth of 12.74% in the same period. Despite these positive revenue trends, the company's profitability remains a concern, as highlighted by an InvestingPro Tip pointing out that InnovAge has not been profitable over the last twelve months.
For investors interested in learning more about InnovAge's performance and potential, there are additional InvestingPro Tips available. These tips delve deeper into the company's financials and market position, offering valuable insights for making informed investment decisions.
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