Timothy Nguyen, a significant shareholder of MeridianLink, Inc. (NYSE:MLNK), recently sold a substantial portion of his holdings in the company. According to a recent SEC filing, Nguyen disposed of a total of 115,701 shares over two days, amounting to approximately $2.71 million. The sales occurred at prices ranging from $23.0819 to $24.2269 per share.
Following these transactions, Nguyen maintains ownership of 10,912,711 shares through SCML, LLC, a trust for the benefit of Nguyen and his family. Additionally, Nguyen made a charitable gift of 150,000 shares to a donor-advised fund, which is valued at $0 for reporting purposes.
In other recent news, MeridianLink has seen steady growth and financial execution, prompting an upgrade to Neutral by UBS and a raised target of $25.50. This upgrade follows the company's consistent performance on revenue and earnings, as well as a positive shift in the lending environment anticipated for 2025. MeridianLink's third-quarter performance showcased a 6% adjusted EBITDA beat compared to expectations, with a revenue of $80.4 million. The company also returned $31.3 million to shareholders through stock buybacks and reported $18.7 million in free cash flow.
Furthermore, MeridianLink projects Q4 2023 revenue to be between $76 million and $80 million and estimates a 3% to 4% increase in full-year 2024 revenue, reaching between $313 million and $317 million. The company plans to drive this growth through organic efforts, disciplined mergers and acquisitions, and share repurchases. Recent developments also highlight MeridianLink's focus on a "land-and-expand" strategy, enhancing its leadership team, and leveraging data and analytics capabilities for personalized consumer offers. These recent strides have positioned MeridianLink for continued success amidst an evolving financial landscape.
InvestingPro Insights
Timothy Nguyen's recent sale of MeridianLink (NYSE:MLNK) shares comes at an interesting time for the company. According to InvestingPro data, MeridianLink's stock has experienced a significant 26.99% price increase over the past six months, despite a recent 8.59% drop in the last week. This volatility aligns with an InvestingPro Tip indicating that the stock "has taken a big hit over the last week."
The company's financial health presents a mixed picture. While MeridianLink boasts a strong gross profit margin of 71.78% for the last twelve months as of Q3 2023, it's currently not profitable over the same period. However, an InvestingPro Tip suggests that "analysts predict the company will be profitable this year," which could explain why insiders like Nguyen might be taking some profits now.
Interestingly, another InvestingPro Tip reveals that "management has been aggressively buying back shares," which typically signals confidence in the company's future prospects. This share repurchase program contrasts with Nguyen's recent sale, potentially offering different perspectives on the company's valuation.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for MeridianLink, providing deeper insights into the company's financial position and market performance.
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