Steve Johnson, the Chief Financial Officer of Marpai, Inc. (NASDAQ:MRAI), recently purchased 5,000 shares of the company's Class A Common Stock. The shares were acquired on December 5, 2024, at a price of $1.13 per share, totaling $5,649. According to InvestingPro data, the stock is currently trading at Fair Value, while analysts have set an ambitious price target of $6.00 per share.
In addition to this purchase, Johnson also received 100,000 shares as part of a restricted stock unit (RSU) award. These RSUs will vest upon the company achieving a year-end unadjusted EBITDA of $5 million or more, provided Johnson remains an employee in good standing at the time of vesting. This target represents a significant turnaround from the current EBITDA of -$14.63 million for the last twelve months.
Following these transactions, Johnson's total direct ownership in Marpai stands at 473,061 shares. The company, with a market capitalization of $19.52 million, has shown strong momentum with a 71% price return over the past six months, despite an overall weak financial health score. Discover more comprehensive insights and exclusive ProTips about MRAI's financial outlook in the detailed Pro Research Report, available on InvestingPro.
In other recent news, Marpai Inc. reported promising Q3 2024 results with significant operational improvements and a robust sales pipeline for 2025. The company's CEO, Damien Lamendola, displayed confidence in Marpai's turnaround efforts, emphasizing the company's commitment to long-term shareholder value. Operational efficiencies led to a 75% and 80% decrease in average claim processing and call answer times, respectively, and the company anticipates positive industry impacts due to political developments.
Revenue for the quarter declined by 3% from Q2, but the company significantly cut operating expenses by 15%, ending with over $800,000 in cash and a reduced operating loss. Marpai has also secured multi-year contracts, providing a stable revenue stream, and plans to reduce TPA expenses by over 25% in Q1 2025.
The company has attracted a new institutional investor, the IFCM MicroCap Fund managed by Ian Cassel, and has eliminated the need for a third-party customer service team, enhancing efficiency. Despite these improvements, Marpai reported an operating loss, albeit a reduced one from the previous quarter. These are some of the recent developments in Marpai's operations and financial performance.
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