Clear Secure president & CFO sells shares worth over $2.4m

Clear Secure, Inc. (NYSE:YOU) President and Chief Financial Officer Kenneth L. Cornick has sold a significant number of shares in the company, according to a recent filing with the Securities and Exchange Commission. Cornick parted with a total of 79,935 shares of Class A Common Stock at an average price of $30.04, resulting in a transaction value of over $2.4 million.

The shares were sold on August 29, 2024, in multiple transactions with prices ranging from $30.00 to $30.22. Following the sale, Cornick's direct holdings in the company dropped to zero. The transactions were conducted automatically under a Rule 10b5-1 trading plan, which had been established by Cornick on March 12, 2024.

Rule 10b5-1 trading plans are pre-arranged stock selling or buying programs that provide company insiders with the ability to sell or purchase shares at predetermined times. These plans are often used to prevent any accusations of trading on insider information, as they are set up when the insider does not possess any confidential company information.

Clear Secure, Inc. specializes in prepackaged software services and is headquartered in New York. Despite the substantial sale by its President and CFO, the company has not released any additional information regarding the transaction or its potential impact on the company's operations or financial position.

Investors and shareholders interested in the specifics of the transactions or the prices at which the shares were sold within the reported range may request detailed information from Cornick as noted in the SEC filing. Lynn Haaland, serving as Attorney-in-Fact, signed the document on behalf of Cornick on August 30, 2024.

In other recent news, CLEAR, the secure identity company, has reported impressive figures for its fiscal second quarter of 2024. The company added a record 2.3 million members during the quarter, which fueled growth in its CLEAR Travel and CLEAR Verified sectors. Financially, the company experienced a 25% increase in revenues, a 137% rise in adjusted EBITDA, and substantial growth in cash flow, with operations and free cash flow up by 65% and 90%, respectively.

The company also launched new technology enhancements and CLEAR Perks for its CLEAR Plus members and announced an airport innovation campaign to bring new technology to American airports. Further, CLEAR has raised its free cash flow growth guidance for the fiscal year to at least 40%.

Despite a slight year-over-year decline in member retention, CLEAR is optimistic about its future, aiming for 50 million members by 2025, and is planning expansion into other venues like Home Depot (NYSE:HD) to reduce fraud using its identity platform. The company's recent acquisition of Sora is expected to positively impact partner services, and it sees TSA PreCheck as a key revenue driver. These are among the recent developments that illustrate CLEAR's commitment to sustained growth in the secure identity market.

InvestingPro Insights

As investors digest the news of Clear Secure, Inc.'s (NYSE:YOU) President and CFO Kenneth L. Cornick's recent share sale, it's essential to look at the company's financial health and market performance for a broader context. According to InvestingPro, Clear Secure, Inc. holds a market capitalization of $4.23 billion and has demonstrated a notable revenue growth of 32.44% over the last twelve months as of Q2 2024. This growth trajectory is a positive signal for investors considering the company's prospects.

InvestingPro Tips highlight that Clear Secure, Inc. is trading near its 52-week high, with the price at 99.8% of this peak, reflecting strong investor confidence. Furthermore, the company has shown a robust return over the last three months, with an 80.25% increase in its stock price. This momentum could be an indicator of the market's positive reception to the company's strategies and performance. For investors looking for more insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/YOU, offering a deeper dive into the company's financial nuances.

Another key metric to consider is the company's P/E ratio, which stands at 38.32. While this might suggest a higher valuation compared to earnings, the company's strong revenue growth could justify the current market pricing. For a more comprehensive analysis, including a range of other InvestingPro Tips, investors can explore the full list on the InvestingPro platform.

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