SAN FRANCISCO, CA – Forge Global Holdings, Inc. (NYSE:FRGE) announced today that its CEO, Kelly Rodriques, has terminated his prearranged stock trading plan. Known as a 10b5-1 plan, it was originally adopted on May 17, 2024, to facilitate the sale of up to 600,000 shares of the company’s common stock. The announcement comes as the stock trades near $0.74, down significantly from its 52-week high of $3.56, according to InvestingPro data.
The trading plan was designed to comply with the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934, allowing company insiders to sell their stock in a pre-scheduled manner to avoid accusations of insider trading. InvestingPro analysis shows the stock has experienced high volatility, with a beta of 2.33 and a significant decline of over 58% in the past year.
According to the company’s statement, Rodriques’s plan was scheduled to expire on the earliest of three conditions: August 31, 2025, the completion of all planned transactions, or if Rodriques ceased to be an employee or director of the company. Prior to its termination, the plan saw the sale of 300,000 shares of Forge Global’s common stock.
The termination of the trading plan took effect today, and the reason for this decision was not disclosed in the company’s filing. The 8-K filing, submitted to the Securities and Exchange Commission, did not indicate any immediate plans for Rodriques to establish a new trading plan.
Forge Global Holdings, headquartered in San Francisco, operates within the securities and commodity brokerage industry and is recognized under the SIC code 6200. The company has undergone previous name changes, known formerly as Motive Capital Corp and MCF2 Acquisition Corp, reflecting its evolving business strategy. With a market capitalization of approximately $137 million, the company maintains a strong current ratio of 5.37, though InvestingPro analysis indicates it’s currently burning through cash with negative EBITDA of $82.23 million in the last twelve months.
According to InvestingPro, analysts have revised their earnings estimates downward for the upcoming period, with the company not expected to be profitable this year. For deeper insights into FRGE’s valuation and financial health metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. The information presented here is based on a press release statement and InvestingPro data.
In other recent news, Forge Global Holdings Inc. announced the appointment of James Nevin, a former executive of the London Stock Exchange Group (LON:LSEG), as its new Chief Financial Officer. This development follows the company’s release of its third quarter fiscal 2024 results, which, while not highlighting specific bullish or bearish points, included forward-looking statements regarding future financial performance.
Forge Global also underwent a recent analyst downgrade from JPMorgan, shifting their stock rating from Neutral to Underweight. The downgrade was attributed to a lack of near-term catalysts and potential volume pressures that could delay the company’s path to profitability.
Despite these challenges, Forge maintains a strong liquidity position with a current ratio of 5.37, even as it faces a significant EBITDA of -$82.2 million. Additionally, the company reported revenue of $79.8 million in the last twelve months.
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