NEW YORK—Isaac T. Kohlberg, a director at Acacia Research Corp (NASDAQ:ACTG), has sold 15,000 shares of the company's common stock. The shares were sold at an average price of $4.5715, resulting in a total transaction value of approximately $68,572. Following this transaction, Kohlberg holds 69,274 shares directly. The sale was executed on November 25, 2024, according to a recent SEC filing. The shares were sold in multiple transactions at prices ranging from $4.5600 to $4.5850.
In other recent news, Acacia Research Corporation (NASDAQ:ACTG) has been making significant strides. The company reported a noteworthy increase in its year-over-year revenue for the third quarter of 2024. A key factor in this financial boost was the acquisition of Deflecto, which played a central role in the company's strategic expansion. This acquisition, valued at $103.7 million, is expected to generate between $128 million to $136 million in revenue for the year.
Acacia's Q3 2024 revenues reached an impressive $23.3 million, marking a 131% increase from the previous year. However, the company reported a GAAP net loss of $14 million or $0.14 per share, partly due to $4.1 million in unrealized losses from equity securities. Despite this, the company's cash reserves have seen a substantial increase, growing to approximately $280 million from the previous year's $242 million.
Furthermore, Acacia has initiated a $20 million stock repurchase program, with about 3 million shares already repurchased. As part of recent developments, CEO MJ McNulty has expressed interest in the crypto space, albeit with a cautious approach due to market volatility. These developments highlight Acacia's robust financial position and strategic focus on future acquisitions and organic growth opportunities.
InvestingPro Insights
As Isaac T. Kohlberg reduces his stake in Acacia Research Corp (NASDAQ:ACTG), investors may benefit from a closer look at the company's financial health and market performance. According to InvestingPro data, ACTG has a market capitalization of $439.13 million and a P/E ratio of 9.41, suggesting a relatively low valuation compared to earnings.
An InvestingPro Tip indicates that ACTG has been profitable over the last twelve months, which aligns with the company's attractive P/E ratio. However, another tip warns that net income is expected to drop this year, which could explain the director's decision to sell shares.
Despite the projected income decline, ACTG has shown impressive revenue growth, with a 261.08% increase in the last twelve months as of Q3 2024. This growth is complemented by a strong gross profit margin of 53.86% and an operating income margin of 24.1% for the same period.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into ACTG's financial outlook. Currently, there are 6 additional InvestingPro Tips available for Acacia Research Corp, which could help investors make more informed decisions about the company's prospects.
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