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Urgent.ly Inc. (NASDAQ:ULY) director Ben Volkow has sold a portion of his company stock, as per recent filings with the Securities and Exchange Commission. The transactions, which occurred on August 27 and 28, resulted in the sale of 1,500 shares of common stock, totaling over $1,400.
The sale was executed under a Rule 10b5-1 trading plan, which Volkow had previously adopted on November 20, 2023. This type of plan allows insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.
According to the filing, the shares were sold in multiple transactions at prices that ranged from $0.925 to $0.9489. Specifically, 800 shares were sold on August 27 at an average price of $0.9489, while 700 shares were sold on August 28 at an average price of $0.925. The filing includes a commitment by Volkow to provide full information regarding the number of shares sold at each separate price within the stated ranges upon request.
Following these transactions, Volkow's direct ownership in Urgent.ly Inc. stands at 522,752 shares. The sale represents a small fraction of his total stake in the company, which offers computer processing and data preparation services.
Investors often monitor insider sales as they may provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is important to note that such sales do not always indicate a lack of confidence in the company and may be carried out for a variety of personal financial reasons.
In other recent news, Urgent.ly, a significant player in the roadside assistance sector, has released its second-quarter results and has made noteworthy announcements. Despite experiencing a squeeze in gross margins and operational expenditures surpassing expectations, Urgent.ly has reaffirmed its commitment to long-term revenue growth, with an anticipated increase in the range of 20-30%. Needham, a financial consulting firm, has maintained a Buy rating on Urgent.ly but adjusted its price target from $5.00 to $2.00, reflecting a 5x multiple on the firm's revised FY26E adjusted EBITDA.
Continuing on recent developments, Urgent.ly has renewed and expanded contracts with significant customers, alleviating concerns following the loss of a major client. The company has also extended its partnership with a leading global automotive OEM to Canada, continuing to support warranty roadside assistance and post-warranty membership plans. This seven-year agreement aims to enhance the efficiency and customer experience of roadside assistance through Urgent.ly's digital platform.
In other company news, shareholders of Urgent.ly have elected Class I directors and ratified the company's independent auditors for the upcoming fiscal year at the 2024 Annual Meeting of Stockholders. The newly elected directors, Gina Domanig and Ryan Pollock, will serve until the 2027 annual meeting or until their successors are elected and qualified. The shareholders also unanimously approved the appointment of CohnReznick LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
InvestingPro Insights
As Urgent.ly Inc. (NASDAQ:ULY) faces scrutiny following insider stock sales by director Ben Volkow, a deeper look into the company's financial health and stock performance through InvestingPro insights reveals a challenging landscape. According to InvestingPro data, Urgent.ly is grappling with a significant market cap contraction, currently standing at a mere $12.35 million USD. This decline is mirrored in the company's recent performance metrics, with a stark revenue drop of 16.15% over the last twelve months as of Q2 2024.
InvestingPro Tips highlight that Urgent.ly operates with a heavy debt burden and is rapidly depleting its cash reserves. The company's gross profit margins are also under pressure, registering at 21.75% over the same period. This financial strain is reflected in the stock's trajectory, as Urgent.ly's price has plummeted by over 38% in the past month alone, and a staggering 82.71% over the last year. The stock's current price stands at just $0.92 USD, which is a mere 8.25% of its 52-week high.
These metrics provide a broader context to Volkow's recent stock sale and may offer investors a clearer picture of the company's current state. Urgent.ly's financial challenges and stock price decline could be factors influencing insider transactions. For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ULY, which could further inform investment decisions regarding Urgent.ly Inc.
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