Xometry, Inc. (NASDAQ:XMTR) Chief Operating Officer Peter Goguen recently sold company shares, according to the latest filings. The transaction involved the sale of 940 shares of Class A Common Stock at a weighted average price of $17.2213 per share, totaling over $16,188.
The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units. Furthermore, the transaction was executed automatically under a Rule 10b5-1 trading plan, which was adopted by Goguen at least 90 days prior to the sale. The shares were sold in multiple transactions with prices ranging from $17.11 to $17.46.
After the sale, Goguen's holdings in the company amount to 192,419 shares of Class A Common Stock. This move reflects standard practices for executives managing their stock-based compensation and tax obligations.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's stock value and financial health. However, sales like this one, especially when conducted under a pre-arranged trading plan, are not uncommon and can be part of a regular financial planning strategy.
Xometry, headquartered in North Bethesda, Maryland, operates within the business services sector, providing a marketplace for on-demand manufacturing.
In other recent news, Xometry, Inc. reported strong financial performance in the second quarter of 2024 with a record revenue of $133 million, marking a 19% increase from the previous year. The company's marketplace revenue, a key component of its total revenue, surged by 25% year-over-year to $117 million. Additionally, the active buyer base expanded by 27% year-over-year, indicating a robust marketplace engagement.
Despite these positive outcomes, the company's supplier services revenue declined by 13% year-over-year to $15.3 million. However, Xometry remains optimistic about its growth trajectory and is aiming to achieve adjusted EBITDA profitability at a $600 million revenue run rate. The company also set a target of reaching $1 billion in revenue, highlighting its ambitious growth plans.
In terms of future developments, Xometry expects its marketplace growth to be at least 20% for the full year, and projects Q3 revenue to be between $136 million and $138 million. As part of its strategic initiatives, Xometry is focusing on expanding buyer and supplier networks, improving auto-quoting capabilities with Google (NASDAQ:GOOGL) Vertex (NASDAQ:VRTX) AI, and enhancing supplier services.
InvestingPro Insights
To provide additional context to Peter Goguen's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Xometry (NASDAQ:XMTR).
According to InvestingPro data, Xometry's market capitalization stands at $858.25 million, positioning it as a small-cap company in the on-demand manufacturing marketplace sector. The company has demonstrated strong revenue growth, with a 20.19% increase in the last twelve months as of Q2 2023, reaching $502.36 million. This growth trajectory aligns with the company's expanding presence in the business services sector.
Despite the revenue growth, InvestingPro Tips indicate that Xometry is not currently profitable, which is reflected in its negative P/E ratio of -14.41 for the last twelve months. This profitability challenge is further emphasized by the operating income margin of -13.25% over the same period. These figures suggest that while Xometry is expanding its top line, it's still working towards achieving profitability—a common scenario for growth-focused companies in emerging markets.
Interestingly, Xometry's stock has shown a strong return of 49.28% over the last three months, indicating recent investor optimism. This positive momentum could be attributed to the company's revenue growth and market potential. However, it's worth noting that the stock generally trades with high price volatility, as pointed out by another InvestingPro Tip. This volatility factor may explain why executives like Goguen have pre-arranged trading plans to manage their equity positions systematically.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 5 more InvestingPro Tips available for Xometry, which could provide valuable perspective on the company's financial health and market position.
As Xometry continues to navigate its growth phase, these financial indicators and insider transactions offer a nuanced view of the company's current state and potential future trajectory in the on-demand manufacturing space.
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