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SurgePays, Inc. (OTC:SURG) Chief Financial Officer, Anthony George Evers, has recently sold a portion of his holdings in the company, according to the latest SEC filings. On September 3 and 4, Evers sold a total of 36,667 shares of SurgePays common stock, netting over $56,000.
The transactions took place at varying prices, with shares sold at a high of $1.62, a low of $1.50, and an average price of $1.5376. The sales were executed to cover taxes associated with the vesting of restricted share awards, as stated in the footnotes of the SEC filing.
Prior to these sales, Evers was awarded 66,667 restricted shares (RSAs) on September 1, which are set to vest on November 1, 2024. This award is part of a series of restricted stock awards that Evers has received, including 66,667 shares that vested on July 1, 2024, and August 1, 2024, as well as another 66,667 shares due to vest on October 1, 2024.
Following the reported sales, Evers still holds a substantial number of shares in SurgePays, totaling 258,257 shares of common stock. This indicates a continued vested interest in the company's performance and future.
SurgePays, Inc., headquartered in Bartlett, Tennessee, operates within the telecommunications sector, providing services and technology solutions. The company's stock is traded over-the-counter, and these recent transactions provide insight into the trading activity of its top executives.
In other recent news, SurgePays, Inc. reported a significant drop in its Q2 revenue, falling to $15.1 million from $35.9 million in the same quarter of the previous year. This decline was largely due to the cessation of the federal Affordable Connectivity Program (ACP). In response to this setback, the company announced the launch of LinkUp Mobile, a non-subsidized MVNO business, and a stock buyback program of up to $5 million.
Despite the revenue decline, SurgePays is focusing on a recovery plan that includes expanding product offerings and scaling up third-party wholesale transactions. The company aims for positive free cash flow by the end of the year. In addition, Joe Gomez has been hired as VP of MVNO Operations, further bolstering the company's strategic shift.
These recent developments come as the company transitions from a federally-subsidized MVO model to a customer-funded one, with an emphasis on accretive acquisitions and expanding into convenience stores to serve the underserved market. With a clear focus on cash flow positivity and an ambitious transition plan, SurgePays is actively pursuing a strategic pivot to ensure its future growth and stability.
InvestingPro Insights
Amidst the recent trading activity by SurgePays, Inc.'s (OTC:SURG) CFO, Anthony George Evers, investors may be looking for additional context to understand the company's financial health and market performance. According to InvestingPro data, SurgePays currently holds a market capitalization of approximately $28.43 million, reflecting its size in the telecommunications sector.
In terms of performance metrics, the company's price-to-earnings (P/E) ratio stands at -17, indicating that the company is not currently profitable. The negative P/E ratio aligns with an InvestingPro Tip which points out that analysts do not anticipate the company will be profitable this year. This is further reinforced by the company's revenue growth, which has seen a decline of -21.02% over the last twelve months as of Q2 2024, suggesting challenges in maintaining sales momentum.
Furthermore, SurgePays' gross profit margin is reported at 20.06% for the same period, which may be considered modest within the industry. This aligns with another InvestingPro Tip highlighting weak gross profit margins as a concern for the company. Additionally, the stock is trading near its 52-week low, with a price of $1.44 at the previous close, indicating potential undervaluation or a lack of investor confidence.
For investors seeking a deeper dive into SurgePays' performance and potential, there are additional InvestingPro Tips available on the platform. For example, the company's relative strength index (RSI) suggests that the stock is currently in oversold territory, which might interest traders looking for entry points. Moreover, there are 14 more InvestingPro Tips listed for SURG, providing a comprehensive analysis of the company's financials and market position. These insights can be accessed by visiting: InvestingPro SURG.
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