Bill Pereira, COO and President of IDT Corp (NYSE:IDT), reported a significant transaction involving the company's Class B Common Stock. On October 16, Pereira sold 29,175 shares at an average price of $47.24 per share, totaling approximately $1.38 million. This transaction leaves him with 40,000 shares of direct ownership in the company.
In addition to the sale, Pereira acquired 39,155 shares of restricted stock, which were granted and vested immediately. These shares were acquired at no cost. Subsequently, 19,979 shares were withheld by IDT Corp for tax purposes upon the vesting of restricted stock, valued at $47.08 per share, amounting to approximately $940,511.
Pereira's remaining holdings include 3,494 shares held indirectly through a 401(k) plan.
In other recent news, IDT Corporation has reported a strong finish to its fiscal year 2024, with a record fourth quarter adjusted EBITDA. The company's NRS, BOSS Money, and net2phone segments have shown significant growth. BOSS Money achieved over 40% year-over-year growth in both transaction volume and revenue, reaching EBITDA positivity with $4 million generated for the year. Net2phone added approximately 12,000 new seats, significantly improving its adjusted EBITDA margin.
Looking ahead, IDT Corporation aims to continue expanding its profitable segments, maximizing cash flows, and investing in customer acquisition. The company is optimistic about moderating declines in its Traditional Communications segment and projects a lower EBITDA decline. However, the Traditional Communications segment is expected to continue its decline, with EBITDA projected to fall to approximately $5-6 million in fiscal 2025, down from $11 million.
IDT Corporation's future strategies include expanding into new verticals and enhancing product offerings, which is expected to drive further growth. These are recent developments for the company, which continues to prioritize profitability and long-term value creation for its shareholders.
InvestingPro Insights
IDT Corp's recent stock performance and financial metrics provide additional context to Bill Pereira's transaction. According to InvestingPro data, IDT's stock has shown remarkable strength, with a 60.52% price total return over the past year and a 22.95% return in the last month alone. This upward momentum is reflected in the stock trading near its 52-week high, with the current price at 95.71% of that peak.
The company's financial health appears robust, with InvestingPro Tips highlighting that IDT holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This strong financial position may have contributed to investor confidence and the stock's recent performance.
From a valuation perspective, IDT is trading at a P/E ratio of 18.4, which is considered low relative to its near-term earnings growth potential. This is further supported by a PEG ratio of 0.3 for the last twelve months as of Q4 2024, suggesting the stock may be undervalued compared to its growth prospects.
It's worth noting that while Pereira sold a significant number of shares, he also acquired restricted stock and maintains a substantial position in the company. This could be interpreted as a balanced approach to portfolio management rather than a lack of confidence in IDT's future.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for IDT Corp, providing a deeper understanding of the company's financial health and market position.
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