Matterport, Inc.'s (NASDAQ:MTTR) Chief Financial Officer, Fay James Daniel, has sold a portion of his stock in the company, according to a recent filing with the Securities and Exchange Commission. The transaction involved the sale of 25,000 shares of Class A common stock at a weighted average price of $4.4732, totaling over $111,830.
The shares were sold on October 1, 2024, and the sale was executed pursuant to a Rule 10b5-1 trading plan, as noted in the filing's footnotes. This type of trading plan allows company insiders to sell shares over a predetermined period of time, providing a defense against claims of insider trading.
Investors interested in the specifics of the sale might find it noteworthy that the shares were sold in multiple transactions with prices ranging from $4.46 to $4.51. This range indicates a slight fluctuation in the stock's sale price during the course of the trading day.
Following the sale, the CFO continues to hold a substantial number of shares, with 1,518,751 shares of Matterport, Inc. remaining in his possession. These transactions provide insight into the trading activities of the company's top executives and are closely watched by investors for indications of the company's performance and insider confidence.
Matterport, Inc., headquartered in Sunnyvale, California, operates in the prepackaged software industry, offering a platform for data capture and spatial data that is used in a variety of industries including real estate, construction, and insurance.
In other recent news, Matterport, Inc. has made significant progress with its merger with CoStar Group (NASDAQ:CSGP), Inc., a development that has received overwhelming support from stockholders. The merger agreement was approved, and the transaction is expected to be completed in the fourth quarter of 2024, despite a request for additional information from the Federal Trade Commission (FTC). The merger aims to enhance Matterport's offerings in the prepackaged software services industry, leveraging the strengths of both companies.
In other recent developments, Matterport shareholders elected Michael Gustafson as a Class III director and ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024. Deutsche Bank and Northland have shown confidence in Matterport's growth potential, with Deutsche Bank raising its price target for Matterport's shares to $5.50 and Northland initiating coverage of Matterport with an Outperform rating. Lastly, Matterport's technology has been adopted by UK-based home extension company Resi, reflecting the ongoing growth of Matterport and the increasing recognition of its innovative technology in the market.
InvestingPro Insights
To provide additional context to the recent stock sale by Matterport's CFO, it's worth examining some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Matterport's market capitalization stands at $1.42 billion, reflecting the company's current valuation. Despite the recent insider sale, the stock has shown remarkable performance, with a 117.56% price total return over the past six months and a 101.81% return over the last year. This strong performance aligns with an InvestingPro Tip indicating a "high return over the last year."
However, investors should note that Matterport is not currently profitable, with a negative P/E ratio of -7.72 for the last twelve months as of Q2 2024. This is consistent with another InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year." Despite this, Matterport's revenue for the last twelve months as of Q2 2024 was $162.28 million, with a modest revenue growth of 3.56% over the same period.
On a positive note, Matterport's balance sheet appears solid. An InvestingPro Tip highlights that the company "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." This financial stability could provide some reassurance to investors in light of the CFO's recent stock sale.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Matterport, providing a deeper understanding of the company's financial position and market performance.
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