Ben Volkow, a director at Urgent.ly Inc. (NASDAQ:ULY), has sold a portion of his holdings in the company, according to a recent SEC filing. On October 22, Volkow sold 6,178 shares of common stock, amounting to a total transaction value of $4,944. The shares were sold at a weighted average price of $0.8004, with individual transaction prices ranging from $0.7002 to $0.921.
This transaction was conducted under a Rule 10b5-1 trading plan, which Volkow had adopted on November 20, 2023. Following this sale, Volkow retains ownership of 447,718 shares of Urgent.ly Inc. stock.
In other recent news, Urgent.ly, a provider of digital roadside and mobility assistance technology, has secured a three-year contract renewal with a global automotive fleet management company. This extension brings their collaboration to a total of nine years. In addition to this, Urgent.ly has also expanded its partnership with a leading global automotive OEM to include services in Canada.
The company recently announced the strategic divestiture of its subsidiary, The Floow, retaining a 49% stake and a perpetual royalty-free license for The Floow's technology. This move is aimed to streamline Urgent.ly's focus on its core business.
In analyst notes, Needham reaffirmed its Buy rating on Urgent.ly but adjusted its price target from $5.00 to $2.00, following the company's second-quarter results. The new price target is based on the firm's revised FY26E adjusted EBITDA.
In internal affairs, shareholders elected Gina Domanig and Ryan Pollock as Class I directors and ratified CohnReznick LLP as the company's independent auditors for the upcoming fiscal year. These are some of the recent developments surrounding Urgent.ly.
InvestingPro Insights
The recent stock sale by Ben Volkow comes at a time when Urgent.ly Inc. (NASDAQ:ULY) is facing significant challenges. According to InvestingPro data, the company's market capitalization stands at a modest $11.88 million, reflecting the stock's steep decline over the past year. InvestingPro Tips highlight that ULY's stock price has fallen significantly over the last year, with a 79.9% drop in the one-year price total return.
Despite these headwinds, the company has shown some recent positive momentum. An InvestingPro Tip notes that ULY has experienced a significant return over the last week, with data showing a 38.2% price total return in the past week. This short-term rally could explain the timing of Volkow's stock sale, potentially capitalizing on a temporary uptick in share price.
However, investors should be cautious. InvestingPro Tips indicate that ULY operates with a significant debt burden and is quickly burning through cash. These factors, combined with the company's negative EBITDA of -$27.48 million for the last twelve months as of Q2 2024, suggest ongoing financial challenges.
For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for ULY, providing a deeper understanding of the company's financial health and market position.
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