Urgent.ly Inc. (NASDAQ:ULY) director Ben Volkow has sold a portion of his holdings in the company, according to the latest regulatory filings. The transaction involved the sale of 8,478 shares of common stock at an average price of $0.815 per share, amounting to a total value of $6,909.
The shares were sold on September 20, 2024, and the sale was executed as part of a pre-arranged trading plan under Rule 10b5-1, which was adopted by Volkow on November 20, 2023. This rule allows company insiders to set up a trading plan for selling stocks they own in a way that avoids accusations of insider trading.
The prices at which the shares were sold varied, with individual transactions occurring at prices ranging from $0.7606 to $0.8659. The weighted average price was reported at $0.815, reflecting the range of prices at which the stock was sold. Following this transaction, Volkow still owns a significant number of shares, with his holdings standing at 474,796 shares of Urgent.ly's common stock.
Investors and followers of Urgent.ly Inc. will likely be interested in these transactions as they can offer insights into the confidence levels of the company's directors in the firm's current and future prospects. Urgent.ly Inc. is known for its services in computer processing and data preparation, and such insider activities are often closely monitored by the market.
It is important to note that such filings with the SEC provide transparency and are a routine part of an executive's financial management. The reporting person has stated a willingness to provide full information regarding the number of shares sold at each separate price within the range upon request by the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission.
In other recent news, Urgent.ly Inc. has announced several notable developments. The company recently reported the strategic divestiture of its subsidiary, The Floow, retaining a 49% stake while returning 51% ownership to The Floow's management. This move allows Urgent.ly to concentrate on its core business of providing digital roadside and mobility assistance technology.
Simultaneously, Urgent.ly has renewed and expanded contracts with key customers and extended its partnership with a leading global automotive OEM to include services in Canada. These developments underscore the company's commitment to long-term revenue growth.
In terms of analyst ratings, Needham reaffirmed its Buy rating on Urgent.ly but adjusted its price target from $5.00 to $2.00 following the company's second-quarter results. This adjustment is based on the firm's revised FY26E adjusted EBITDA.
In internal company affairs, shareholders recently elected Gina Domanig and Ryan Pollock as Class I directors and ratified CohnReznick LLP as the company's independent auditors for the upcoming fiscal year. These recent developments reflect a proactive approach to the company's growth and future operations.
InvestingPro Insights
As Urgent.ly Inc. (NASDAQ:ULY) navigates through its financial landscape, recent data from InvestingPro provides a deeper understanding of the company's current valuation and performance metrics. With a market capitalization of approximately $11.84 million, Urgent.ly is considered a small-cap company, which can often mean higher volatility and risk for investors. The company's trailing twelve months as of Q2 2024 show a revenue of $165.73 million, yet this represents a decline of 16.15% from the previous period, aligning with analysts' anticipation of a sales decline in the current year.
The gross profit margin for the same period stands at 21.75%, which suggests that Urgent.ly is facing challenges in maintaining profitability amid its revenue contraction. Additionally, the company's price at the previous close was $0.88, which is significantly below the fair value estimates of $2.00 by analysts and $0.98 by InvestingPro. This discrepancy may indicate a potential undervaluation of the stock, considering the company's fundamentals.
InvestingPro Tips highlight that Urgent.ly operates with a significant debt burden and is quickly burning through cash, which are critical factors for investors to consider. Moreover, with short-term obligations exceeding liquid assets, the company's financial stability is in question. These insights are particularly pertinent given the recent insider sale by director Ben Volkow, as they may provide context to the transaction and the broader investment narrative surrounding Urgent.ly.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available that delve into various aspects of Urgent.ly's financial health and market performance. These tips can be accessed through the dedicated InvestingPro platform, offering a more detailed perspective on the company's strategic position and investment potential.
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