Intel stock extends gains after report of possible U.S. government stake
Backblaze, Inc. (NASDAQ:BLZE) CEO and Chairperson, Gleb Budman, has sold a total of $73,674 worth of company shares, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place over three consecutive days, saw the CEO sell shares at prices ranging from $6.22 to $6.45.
The sales were reported to be part of a "sell to cover" transaction, a common practice where shares are sold to cover tax withholding obligations associated with the vesting of restricted stock units. This type of sale is mandated by the company's equity incentive plans and does not necessarily reflect discretionary trading by the reporting individual.
On August 21, Budman sold 3,599 shares at an average price of $6.34, with the price of shares ranging from $6.245 to $6.445. Following this transaction, the CEO offloaded another 3,482 shares on August 22 for an average price of $6.22, with sales prices varying between $6.145 and $6.35. The final sale occurred on August 23, with 4,527 shares sold at an average price of $6.45, and individual prices ranging from $6.22 to $6.64.
After the series of transactions, Budman's holdings in Backblaze's Class A Common Stock decreased, yet he still retains a substantial stake in the company with 1,874,967 shares remaining under his ownership. The reported sales are part of the routine financial disclosures made by company executives and provide transparency into their transactions in company stock.
Investors often monitor such filings for insights into executive confidence in the company's performance and future prospects. However, it's important to note that sales mandated by equity incentive plans are a standard procedure for handling tax obligations and may not necessarily signal a change in an executive's outlook on the company.
In other recent news, Backblaze, Inc. has reported strong second quarter results for 2024, outperforming expectations with a 27% revenue increase. The company's B2 Cloud Storage segment notably grew by 43%. In addition, Backblaze announced key executive appointments, including Jason Wakeam as Chief Revenue Officer and Marc Suidan as CFO.
The company's growth continues, marked by a significant increase in large customer accounts and a net revenue retention rate of 114%. Backblaze's adjusted EBITDA profit marked its third consecutive quarter of profitability. The company has raised its annual revenue guidance to between $126.5 million and $128.5 million, indicating confidence in its continued growth, particularly in its B2 Cloud Storage business, expected to grow by 40%.
Backblaze expects Q3 revenue between $32.4 million and $32.8 million. The company is on track to reach total cash usage breakeven by mid-2025 and become free cash flow positive shortly thereafter. These recent developments suggest a positive outlook for investors.
InvestingPro Insights
As Backblaze, Inc. (NASDAQ:BLZE) navigates through its financial journey, recent data from InvestingPro offers a deeper look into the company's current market position. With a market capitalization of approximately $264.82 million, Backblaze is operating in a challenging environment. According to the latest metrics, the company is not anticipated to be profitable this year, a sentiment echoed by its negative P/E ratio of -4.07 for the last twelve months leading up to Q2 2024. This figure further declined to -5.71 when adjusted for the same period, highlighting the company's ongoing struggle to turn a profit.
Moreover, the company's Price/Book ratio stands at 6.27, suggesting that the market values the company significantly higher than its book value. This could be indicative of investor expectations for future growth or the intangible assets and intellectual property that Backblaze holds. Despite the CEO's recent share sales, it's notable that the company's stock price has experienced a substantial 33.77% decline over the past six months, aligning with one of the InvestingPro Tips that the stock has taken a big hit in that time frame.
Investors should also be aware that Backblaze operates with a moderate level of debt and that its short-term obligations exceed its liquid assets, according to another InvestingPro Tip. This could be a point of consideration for those assessing the company's financial resilience and liquidity. For those looking for additional insights, there are 7 more InvestingPro Tips available for Backblaze, which can be found at https://www.investing.com/pro/BLZE, offering a comprehensive analysis for informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.