Donald Lee Moak, a director at Wheels Up Experience Inc. (NYSE:UP), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Moak sold a total of 41,766 shares over two days.
On November 25, Moak sold 20,000 shares at a weighted average price of $2.50, totaling $50,000. This transaction was carried out under a pre-established trading plan that complies with Rule 10b5-1. The following day, Moak sold an additional 21,766 shares at an average price of $2.47, amounting to $53,762.
After these transactions, Moak retains ownership of 108,465 shares in Wheels Up.
In other recent news, Wheels Up Experience Inc. has secured a $332 million revolving equipment notes facility, facilitated by Bank of America, for fleet expansion and refinancing. This move includes the acquisition of 17 Embraer Phenom 300 series aircraft from GrandView Aviation. The company reported stabilized revenue of $194 million and a significant decrease in adjusted EBITDA loss to $20 million for the third quarter of 2024. Furthermore, Wheels Up announced a strategic partnership with Delta Airlines (NYSE:DAL) and a plan for fleet modernization.
The fleet transition, expected to be completed within three years, will involve a move to Embraer Phenom 300 and Bombardier (OTC:BDRBF) Challenger 300 series aircraft. Despite a 20% year-over-year decline in private jet gross bookings in the third quarter of 2024, the company maintains a completion rate of 98% and an on-time performance of 82%. As part of recent developments, Wheels Up is striving to achieve positive adjusted EBITDA by the full year 2025, backed by increased block sales and a fortified management team. These updates reflect the company's ongoing efforts to enhance operational performance and customer experience.
InvestingPro Insights
The recent insider selling by Donald Lee Moak at Wheels Up Experience Inc. (NYSE:UP) comes at a time when the company's stock has shown significant volatility and mixed performance. According to InvestingPro data, UP has seen a strong return of 26.84% over the last three months, with a notable 15.31% gain in just the past week. This short-term uptrend might have influenced the director's decision to sell a portion of his holdings.
However, investors should consider that Wheels Up is facing some financial challenges. InvestingPro Tips highlight that the company is not profitable over the last twelve months, with a negative P/E ratio of -5.02. The company's revenue has also declined significantly, with a -41.09% revenue growth in the last twelve months as of Q3 2024. These factors may contribute to the stock's high price volatility, another characteristic noted by InvestingPro.
Despite these challenges, it's worth noting that InvestingPro's fair value estimate for UP stands at $2.49, which is slightly above the recent selling prices by Moak. This suggests that the stock might be reasonably valued at current levels, despite its recent volatility and financial performance issues.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Wheels Up Experience Inc., providing a deeper understanding of the company's financial health and market position.
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