Cardlytics, Inc. (NASDAQ:CDLX) CEO Amit Gupta recently engaged in a series of transactions involving the company's stock, according to the latest SEC filings. Gupta sold 7,543 shares of Cardlytics common stock at an average price of $3.085, netting a total of $23,270.
The transactions took place on October 2, 2024, with the sale prices ranging from $3.05 to $3.145. The sales were primarily conducted to satisfy tax withholding obligations connected to vested restricted stock units (RSUs). Gupta did not sell shares for any purpose other than to meet these obligations.
In addition to the sales, Gupta also acquired 14,350 RSUs, which represent a contingent right to receive shares of Cardlytics common stock. These units are part of an award that is set to vest in eight equal installments over the course of two years, provided Gupta remains employed with the issuer on the vesting dates.
Following these transactions, Gupta's ownership in Cardlytics stands at 157,376 shares of common stock directly held, and 86,097 RSUs. The SEC filing did not disclose any transactions involving derivative securities for Gupta during this reporting period.
Investors and Cardlytics' stakeholders often keep a close eye on insider transactions as they can provide valuable insights into executives' perspectives on the company's current valuation and future prospects.
In other recent news, Cardlytics reported a mixed financial performance for Q2 2024. The company saw a slight rise in billings to $110.4 million, while revenue witnessed a 7% decline to $69.6 million. Cardlytics also announced significant leadership changes, appointing Amit Gupta as the new CEO and board member, effective from August 16, 2024. Despite this transition, the company remains focused on technology improvements, cost discipline, and transitioning to engagement-based pricing.
Cardlytics also introduced the Insight dashboard, targeting enhanced advertiser retention and budget growth. Furthermore, the company anticipates Q3 billings to range between $100 million and $106 million, with revenue forecasts of $56 million to $63 million. Notably, while the company's monthly active users increased to 165.5 million, the average revenue per user declined by 13%. These are among the recent developments at Cardlytics.
InvestingPro Insights
To provide additional context to CEO Amit Gupta's recent stock transactions, let's examine some key financial metrics and insights from InvestingPro for Cardlytics, Inc. (NASDAQ:CDLX).
As of the latest data, Cardlytics has a market capitalization of $153.01 million, reflecting its current valuation in the market. The company's stock is trading near its 52-week low, with a price-to-book ratio of 0.73, suggesting the stock may be undervalued relative to its book value.
InvestingPro Tips highlight that Cardlytics operates with a significant debt burden and may have trouble making interest payments on its debt. This financial strain is reflected in the company's performance, as it has not been profitable over the last twelve months. The stock price has fallen significantly over the past year, with a one-year price total return of -76.67%.
Despite these challenges, it's worth noting that Cardlytics' liquid assets exceed its short-term obligations, which could provide some financial flexibility. However, analysts anticipate a sales decline in the current year, with revenue growth (quarterly) for Q2 2024 at -9.21%.
These insights from InvestingPro offer a broader perspective on Cardlytics' financial health and market position, which may help explain the context of the CEO's recent stock transactions. For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Cardlytics, providing a deeper understanding of the company's financial situation and market performance.
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