AudioEye Inc's (NASDAQ:AEYE) Executive Chairman, Carr Bettis, has sold a portion of his holdings in the company, according to a recent SEC filing. Bettis, who also serves as Chairman of the Board, disposed of 7,330 shares of common stock on June 12, 2024, at an average price of $20.463 per share. The total value of the stock sold amounts to approximately $150,000.
Following the transaction, Bettis continues to have substantial ownership in the company, with 425,045 shares held indirectly through CSB IV US Holdings LLC, which he is deemed to be a beneficial owner of, as noted in the SEC filing footnotes. Additionally, he has an interest in 18,600 shares held in his Carr Bettis IRA, further demonstrating his ongoing investment in AudioEye.
AudioEye, a company specializing in prepackaged software services, has seen its stock actively traded by insiders, which is often a point of interest for investors. While the reasons behind Bettis's sale are not disclosed, such transactions are closely monitored as they can provide insights into the executive's view of the company's future prospects.
Investors and market watchers may continue to observe the trading activities of AudioEye's executives for signs of their confidence in the company's strategy and performance. Bettis's remaining stake in the company aligns him with the interests of other shareholders as AudioEye continues to evolve within the technology sector.
In other recent news, AudioEye reported a strong financial performance for the first quarter of 2024, with record revenues and a significant uptick in annual recurring revenue (ARR). The company announced record revenue of $8.1 million, marking a 10% increase in ARR from the previous quarter. They also achieved adjusted EBITDA of $920,000, or $0.08 per share, a $1 million improvement year-over-year.
In response to these strong financial outcomes, AudioEye's management has increased the full-year 2024 revenue and adjusted EBITDA guidance. B.Riley maintained a Buy rating on AudioEye and raised the stock price target to $18.50 from $14.00, following the company's release of better-than-expected first quarter results.
B.Riley has adjusted its fiscal year 2024 and 2025 estimates for AudioEye, citing the company's consistent solid execution, upcoming regulatory demand tailwinds, and the potential for the stock to continue its upward trajectory over the next year. The firm highlighted that the positive results were driven by growth in the partner/marketplace and enterprise channels, as well as continued operational expenditure leverage.
The company is on track to potentially conclude the fiscal year with high-teen year-over-year revenue growth and a similarly strong adjusted EBITDA margin. With the company's partners currently serving over 80,000 websites that need to comply with accessibility regulations in the next two to three years, there is potential for accelerated revenue growth and margin expansion in the future.
InvestingPro Insights
Amidst the recent insider trading activity at AudioEye Inc (NASDAQ:AEYE), investors might be interested in some key metrics and insights that could shed light on the company's current financial health and future prospects. According to InvestingPro data, AudioEye has a market capitalization of $234.21 million and has been experiencing notable price volatility, with a 145.14% return over the last three months and an even more impressive 382.74% return over the last six months.
The company's gross profit margins remain strong at 77.76% for the last twelve months as of Q1 2023, indicating efficient operations and a potentially competitive edge in its industry. However, it is important to note that AudioEye's P/E ratio stands at -49.02, reflecting investor concerns about the company's profitability in the near term. Additionally, the company's Price / Book ratio is quite high at 47.92, suggesting a premium valuation compared to its book value.
Considering these financial indicators, one of the InvestingPro Tips highlights that analysts predict the company will be profitable this year, which may be a signal for potential investors. Moreover, two analysts have revised their earnings upwards for the upcoming period, pointing to positive sentiment around AudioEye's future earnings potential.
To gain a deeper understanding of AudioEye's performance and to access a comprehensive list of InvestingPro Tips, investors can visit https://www.investing.com/pro/AEYE. There are currently 13 additional InvestingPro Tips available, which could provide valuable insights for those considering an investment in the company. For those interested in a subscription to InvestingPro, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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