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Christos Panagiotakos, Chief Financial Officer of Data Storage Corp (NASDAQ:DTST), recently sold 2,304 shares of the company's common stock. The shares were sold on January 2nd at a price of $4.23 each, amounting to a total transaction value of $9,745. Following this sale, Panagiotakos holds 27,360 shares directly. The transaction was conducted to cover tax withholding obligations.The sale comes amid DTST's impressive market performance, with the stock delivering a 74% return over the past year and surging nearly 19% in the past week alone. According to InvestingPro analysis, the company maintains a strong financial position with a healthy current ratio of 4.8 and more cash than debt on its balance sheet. While trading at relatively high multiples, DTST shows promising fundamentals with 10+ additional insights available through InvestingPro's comprehensive research platform.
In other recent news, Data Storage Corporation reported a slight dip in third-quarter revenues for the fiscal year 2024 due to a decrease in one-time equipment sales. Despite this, the company saw growth in recurring subscription revenue and an improved gross profit margin of 43.2%. The company has secured significant contracts in key sectors, including insurance, healthcare, and education, and has plans for expansion in the U.K.
Data Storage Corporation's CloudFirst subsidiary is projected to generate over $20 million in recurring revenue for 2025, and the company expects over $20 million in service renewals for the same year. The company ended the third quarter with $11.9 million in cash and marketable securities and no long-term debt. The company also reported a 29% increase in infrastructure and disaster recovery cloud services.
These developments suggest a strategic shift towards building a more stable revenue stream through subscription services and cloud infrastructure. The company's ongoing expansion and strategic contracts in various sectors indicate a potential for future growth. With a strong balance sheet and a positive outlook on service renewals, Data Storage Corporation continues to focus on delivering shareholder value and sustaining global client engagement.
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