In a recent transaction, Peter Goguen, the Chief Operating Officer of Xometry, Inc. (NASDAQ:XMTR), sold shares of the company's Class A Common Stock. The sale, which took place on September 17, 2024, involved a total of 986 shares at an average price of $19.27, amounting to approximately $19,000.
The sale occurred through multiple transactions with prices ranging from $18.765 to $19.53. This range suggests that the COO capitalized on varying market conditions to execute the sales. Notably, the transactions were made in line with a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid any accusations of trading on non-public, material information.
Following the sale, Goguen still maintains a significant stake in the company, holding 193,359 shares of Xometry's Class A Common Stock. The COO's recent transaction was partially aimed at covering tax withholding obligations related to the vesting of restricted stock units, as indicated in the footnotes of the filing.
Investors often monitor insider transactions such as these for insights into executives' perspectives on the company's future prospects. However, it's important to note that insider sales can be motivated by a variety of personal financial considerations and do not necessarily indicate a negative outlook on the company's performance or valuation.
Xometry, headquartered in North Bethesda, Maryland, operates in the business services sector, providing a marketplace for on-demand manufacturing. The company has been a part of the industry's digital transformation, offering a platform that connects customers with manufacturing solutions.
In other recent news, Xometry, Inc. reported a strong financial performance for the second quarter of 2024, with record revenue, gross profit, and margins. The company's marketplace revenue surged by 25% year-over-year to $117 million, leading to a total quarterly revenue of $133 million, a 19% increase from the previous year. The active buyer base of Xometry expanded significantly with a 27% year-over-year growth.
Strategic initiatives have been outlined by Xometry, focusing on deepening penetration in the manufacturing sector. The company is on track to achieve adjusted EBITDA profitability at a $600 million revenue run rate and is aiming for $1 billion in revenue.
However, Xometry's supplier services revenue saw a decrease of 13% year-over-year in Q2. Despite this, the company remains optimistic about its growth trajectory, with Q3 revenue projections indicating a 14% to 16% year-over-year growth. These are among the recent developments for Xometry.
InvestingPro Insights
Amidst the insider trading activity at Xometry, Inc. (NASDAQ:XMTR), investors are keen on understanding the company's financial health and future prospects. The real-time data from InvestingPro gives us a glimpse into the company's market position and performance trends.
Xometry's market capitalization currently stands at $947.48 million, reflecting its valuation within the business services sector. Despite a challenging market environment, the company has demonstrated a strong return over the last three months, with a total return of 55.3%. This robust short-term performance is echoed in the company's stock price, which has recently closed at $19.49.
InvestingPro Tips suggest that analysts have revised their earnings estimates upwards for the upcoming period, indicating potential optimism about the company's future earnings. Additionally, Xometry's liquid assets surpass its short-term obligations, providing the company with financial flexibility. For investors seeking more detailed analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/XMTR, which can provide further insights into Xometry's financial metrics and stock performance.
While Xometry's P/E ratio currently stands at -17.63, indicating that investors are willing to pay a premium despite the company not being profitable over the last twelve months, it's important to consider the company's revenue growth of 20.19% in the same period. This growth metric is significant as it showcases the company's ability to increase its sales and potentially move towards profitability.
Investors should be aware that Xometry does not pay a dividend, which may be a consideration for those seeking regular income from their investments. However, the company's recent performance and optimistic earnings revisions may appeal to growth-focused investors.
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