Todd Dzyak, Chief Operating Officer of WidePoint Corp (AMEX:WYY), recently sold shares worth $25,620, according to a regulatory filing. The transactions, dated November 18 and 19, involved the sale of 5,600 shares of common stock. The shares were sold at prices ranging from $4.28 to $4.61, resulting in a total transaction value of $25,620. Following these sales, Dzyak holds 158,516 shares in the company. Additionally, Dzyak retains stock options for 9,714 shares, exercisable at $1.82 per share, with an expiration date of August 4, 2028.
In other recent news, WidePoint Corporation has reported a significant rise in its third-quarter revenues and an impressive increase in its adjusted EBITDA. The company recorded a 35% year-over-year revenue increase, reaching $34.6 million for the quarter. The adjusted EBITDA saw a 149% rise to $574,000, marking the 29th consecutive quarter of profitability. An improvement in free cash flow and a decrease in net loss were also notable achievements this quarter.
WidePoint is making strategic moves with the development of the MobileAnchor Digital Credential solution and is in the final stages of obtaining FedRAMP authorization. The company secured two new high-margin SaaS contracts, driven by the MobileAnchor Digital Credential solution. WidePoint anticipates revenues between $120 million and $133 million for the year, with adjusted EBITDA projected to be between $2.1 million and $2.4 million.
Recent developments at WidePoint demonstrate the company's focus on high-margin opportunities and a strong financial outlook. These developments include a focus on cybersecurity and mobility management sectors, and a transition to a more secure hybrid work environment with multifactor authentication.
InvestingPro Insights
While Todd Dzyak's recent sale of WidePoint Corp (AMEX:WYY) shares may raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, WidePoint has shown impressive revenue growth, with a 31.67% increase in the last twelve months as of Q3 2024, and an even stronger 34.53% quarterly growth in Q3 2024. This robust top-line expansion suggests that the company's services are in high demand.
However, profitability remains a challenge for WidePoint. An InvestingPro Tip highlights that the company is not profitable over the last twelve months, which is reflected in its negative operating income of $2.62 million for the same period. This could explain why the stock is trading at a low revenue valuation multiple, another insight provided by InvestingPro.
Despite these profitability concerns, the market seems optimistic about WidePoint's prospects. The stock has demonstrated strong returns across various timeframes, with a remarkable 191.12% price total return over the past year. This performance aligns with another InvestingPro Tip indicating a significant return over the last week.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips that could provide valuable insights into WidePoint's financial health and market position. These tips, along with real-time metrics, can help investors make more informed decisions about the company's stock.
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