David A. Garrison, the Chief Financial Officer of Harte Hanks Inc. (NASDAQ:HHS), recently acquired shares in the company, according to a recent SEC filing. On November 25, Garrison purchased 850 shares of the company's common stock at an average price of $5.805 per share, totaling approximately $4,934. These shares are held in Garrison's retirement account, bringing his total ownership to 13,129 shares following the transaction.
Additionally, Garrison holds 64,600 non-qualified stock options, which were granted earlier in the year and are set to vest over the next three years.
In other recent news, Harte Hanks, a global marketing services firm, saw a modest 1.1% year-over-year increase in its Q3 2024 revenue, a shift from previous quarters' declines. Despite this positive development, the company anticipates a low to mid-single digit revenue decline in the fourth quarter. Harte Hanks is also undergoing transformation efforts, including cost reduction initiatives and a focus on growing free cash flow. The company has introduced a Chief Customer Data Officer and established the Customer Excellence and Growth division to improve customer experience and sales. Furthermore, Harte Hanks secured new clients in the fulfillment and financial services sectors and expanded relationships with existing customers. However, the company did miss its operating income and EBITDA from the previous year's same quarter. These are some of the recent developments for Harte Hanks.
InvestingPro Insights
David A. Garrison's recent purchase of Harte Hanks Inc. (NASDAQ:HHS) shares comes at a time when the company's stock appears to be undervalued according to some metrics. InvestingPro data shows that HHS is trading at a low revenue valuation multiple, which could indicate potential upside for investors who share Garrison's confidence in the company's future.
However, the company faces some financial challenges. An InvestingPro Tip notes that HHS is quickly burning through cash, which aligns with the negative operating income of -$26.08 million reported in the last twelve months as of Q3 2023. This cash burn rate could be a concern for investors and may explain the recent stock price decline.
Despite these challenges, another InvestingPro Tip suggests that net income is expected to grow this year. This positive outlook, combined with analysts' predictions that the company will be profitable this year, might have influenced Garrison's decision to increase his stake.
It's worth noting that HHS's stock has taken a significant hit recently, with a 19.41% decline over the past month and a 22.08% drop over the last three months. This downturn has pushed the stock's RSI into oversold territory, according to another InvestingPro Tip, potentially presenting a buying opportunity for those who believe in the company's turnaround potential.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for HHS, providing a deeper understanding of the company's financial health and market position.
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