Sterling Check Corp. (NASDAQ:STER) recently reported significant stock sales by major shareholders, according to a recent SEC filing. On October 15 and 16, Montague Street Asset Management LLC, along with Melanie Laird and Steven Greenblatt, sold a total of 1,414,000 shares of common stock. The shares were sold at prices ranging from $17.13 to $17.18, amounting to approximately $24.2 million in total sales.
Following these transactions, the group retains ownership of 9,635,576 shares. The transactions reflect the activities of Montague Street Asset Management, with Melanie Laird and Steven Greenblatt holding key positions within the organization. Both Laird and Greenblatt, as well as the asset management firm, have disclosed their roles as ten percent owners in Sterling Check Corp.
These sales were conducted indirectly through Montague Street Asset Management, with both Laird and Greenblatt disclaiming beneficial ownership except for their pecuniary interests.
In other recent news, Sterling Check Corp. has made significant progress towards its merger with First Advantage. The company has initiated the mailing of the election form to its shareholders, a key phase in the merger process, which was first announced on February 28, 2024. The transaction, which will see Sterling become an indirect, wholly-owned subsidiary of First Advantage, is expected to close in the fourth quarter of 2024.
In tandem with the merger developments, Sterling has also announced a change in its financial leadership. Executive Vice President and Interim Chief Financial Officer, Richard Dziadzio, will assume the additional role of principal accounting officer. This change comes as Chief Accounting Officer Theresa Neri Strong takes maternity leave.
These are the recent developments within Sterling Check Corp. The company continues to move forward with its merger process, which is subject to customary closing conditions, including regulatory approvals. The merger aims to combine the strengths of Sterling and First Advantage, potentially creating a leading force in the background and identity services industry.
InvestingPro Insights
The recent stock sales by major shareholders of Sterling Check Corp. (NASDAQ:STER) come at a time when the company's stock is trading near its 52-week high. According to InvestingPro data, the stock is currently at 97.98% of its 52-week high, with a price of $17.2 as of the previous close. This aligns with the selling price range of $17.13 to $17.18 reported in the SEC filing.
InvestingPro Tips suggest that Sterling Check Corp.'s stock generally trades with low price volatility, which may have provided a stable environment for the large-scale stock sales. Additionally, the company's liquid assets exceed short-term obligations, indicating a solid financial position that could reassure investors despite the significant insider selling.
However, it's worth noting that while net income is expected to grow this year, the company was not profitable over the last twelve months. This mixed financial picture is reflected in the company's P/E ratio of -88.87 and an adjusted P/E ratio of -170.57 for the last twelve months as of Q2 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Sterling Check Corp., providing a deeper understanding of the company's financial health and market position.
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