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Urgent.ly Inc. (NASDAQ:ULY), a company specializing in computer processing and data preparation services, has reported a recent sale of shares by director Ben Volkow. According to the latest filings, Volkow has sold a total of $1,863 worth of the company's common stock.
The transactions took place over two consecutive days. On August 29, 2024, Volkow sold 400 shares at an average price of $0.9715. The following day, he sold an additional 1,600 shares with a weighted average price of $0.922. The sales were conducted in multiple transactions at prices ranging from $0.8847 to $1.01, as detailed in the footnotes of the filing.
After these transactions, Volkow's remaining ownership in Urgent.ly Inc. stands at 520,752 shares of common stock, reflecting his direct ownership stake in the company. It is noted in the footnotes that the sales reported were carried out in accordance with a Rule 10b5-1 trading plan, which was adopted by Volkow on November 20, 2023.
The report filed with the Securities and Exchange Commission provides transparency regarding the trading activities of the company's directors and is a routine disclosure for investors monitoring insider transactions. Ben Volkow's recent sale represents a modest divestment from his holdings in Urgent.ly Inc., with the director still maintaining a significant position in the company after the reported sales.
In other recent news, Urgent.ly, a prominent player in the roadside assistance sector, has been the subject of several significant developments. Needham, a reputable analyst firm, has maintained a Buy rating on Urgent.ly, albeit with a lowered price target from $5.00 to $2.00. This adjustment comes in light of the company's second-quarter results and recent commentary.
The company has renewed and expanded contracts with significant customers and anticipates long-term revenue growth in the range of 20-30%. However, projections for top-line growth have been adjusted to the lower end of this estimate. Furthermore, operational expenditures have surpassed expectations, leading Urgent.ly to revise its forecast for reaching non-GAAP operating income breakeven, moving the target from the third quarter of 2024 to the first quarter of 2025.
In other recent developments, Urgent.ly expanded its partnership with a leading global automotive OEM, extending its services to Canada. This seven-year agreement continues Urgent.ly's support for the OEM's warranty roadside assistance program and post-warranty membership plans. Additionally, Urgent.ly's digital platform will support dealer-provided mobile service programs utilizing real-time data and algorithms.
Finally, during Urgent.ly's 2024 Annual Meeting of Stockholders, shareholders elected Class I directors and ratified the company's independent auditors for the upcoming fiscal year. These recent developments provide a snapshot of the company's current trajectory, highlighting significant agreements, partnerships, and financial forecasts.
InvestingPro Insights
Urgent.ly Inc. (NASDAQ:ULY) has been navigating a challenging financial landscape, as indicated by several metrics and InvestingPro Tips. The company's market capitalization stands at a modest $12.62 million, reflecting investor sentiment and the scale of the business. With a negative adjusted price-to-earnings (P/E) ratio of -0.93 for the last twelve months as of Q2 2024, Urgent.ly's profitability appears to be under pressure. This is further underscored by a significant sales decline, with revenue growth experiencing a downturn of -16.15% over the same period.
InvestingPro Tips highlight that Urgent.ly operates with a significant debt burden and is quickly burning through cash, which could explain the urgent sale of shares by director Ben Volkow. The company's stock price has seen a substantial drop over various timeframes, including a -57.1% six-month total return, which might suggest why insider sales are taking place. The price of the stock at the previous close was $0.94, just 7.21% of its 52-week high, indicating a steep decline in value over the past year.
For investors considering Urgent.ly Inc. as a potential investment, it's worth noting that the company does not pay a dividend to shareholders, which could be a factor for those seeking income-generating stocks. Additionally, the stock has fared poorly over the last month, with a price total return of -33.83%, reflecting ongoing volatility and potential concerns about the company's future prospects.
For a deeper dive into Urgent.ly's financial health and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/ULY, providing valuable insights for informed investment decisions.
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