Esenjay Investments, LLC, a significant shareholder in Flux Power Holdings, Inc. (NASDAQ:FLUX), has recently sold a substantial amount of stock in the company. On June 12, 2024, Esenjay offloaded 134,623 shares at prices ranging from $2.98 to $3.09, with the transaction totaling approximately $401,499.
This sale has been disclosed in a regulatory filing with the Securities and Exchange Commission. Esenjay Investments is closely associated with Michael Johnson, who is both the sole director and beneficial owner of Esenjay. According to the filing, the shares sold were directly held by Esenjay Investments.
Following the transaction, the combined direct and indirect holdings of Michael Johnson and Esenjay Investments in Flux Power Holdings amount to 4,187,934 shares. The recent sale represents a partial divestment by Esenjay Investments, which still retains a significant stake in the company.
Investors often monitor insider transactions such as these for insights into management’s perspective on the company’s future prospects. Sales by insiders can occur for various reasons, and not necessarily because of a negative outlook on the company.
Flux Power Holdings, Inc., based in Vista, California, is known for its role in the miscellaneous electrical machinery, equipment, and supplies industry. The company's stock is publicly traded on the NASDAQ exchange, where it continues to be subject to market fluctuations and investor scrutiny.
The SEC filing also included remarks on power of attorney for both Michael Johnson and Esenjay Investments, LLC, indicating that Kevin Royal acted as the attorney-in-fact for the transactions. These details are part of the standard disclosures required for compliance with federal securities laws.
Investors interested in the specifics of the transactions and the remaining holdings of Michael Johnson and Esenjay Investments in Flux Power Holdings can refer to the detailed information provided in the SEC filing.
In other recent news, Flux Power Holdings reported a decrease in revenues for the third quarter of the fiscal year 2024, with figures dropping to $14.5 million from the previous year's $15.1 million. The company's net loss also widened to $2.6 million, an increase from the previous year's loss of $1.4 million. Despite these challenges, Flux Power remains committed to strategies aimed at increasing revenue growth and reducing costs.
The company has experienced delays in new orders due to revised forklift delivery schedules and the broader impacts of higher interest rates and economic uncertainty. However, Flux Power is expanding its product offerings, including a second-generation lithium-ion battery pack, and is exploring expansion into adjacent markets such as military and medical batteries.
Analysts have noted that the company's open order backlog decreased to $18.5 million, down from $25 million the previous year. Despite these setbacks, Flux Power is confident in its recovery and plans to support sales trajectory and growth through additional selling strategies. These recent developments reflect Flux Power's ongoing efforts to navigate market headwinds while laying the groundwork for future growth.
InvestingPro Insights
Amid the recent insider transactions at Flux Power Holdings, Inc. (NASDAQ:FLUX), the market is keeping a close watch on the company's performance and financials. According to InvestingPro data, Flux Power Holdings currently holds a market capitalization of $54.22 million. While the company has experienced a significant return over the last week, with an increase of 18.93%, it is still trading at a high Price / Book multiple of 11.4. This can be indicative of the market's valuation of the company's net assets being substantially higher than its accounting value, which could be a point of interest for investors.
From a profitability standpoint, Flux Power has not been profitable over the last twelve months, and analysts do not anticipate the company will turn a profit this year. This is reflected in the negative P/E Ratio of -7.71, which has adjusted slightly to -8.77 over the last twelve months as of Q3 2024. Moreover, the company operates with a moderate level of debt, which could be a consideration for risk-averse investors.
For those looking to delve deeper into the financial health and future prospects of Flux Power Holdings, there are additional InvestingPro Tips available. These insights include analysis on earnings revisions, price volatility, and dividend policies. Currently, three analysts have revised their earnings estimates downwards for the upcoming period, and the stock is known to trade with high price volatility. It is also important to note that Flux Power does not pay a dividend to shareholders.
To access a comprehensive set of InvestingPro Tips for Flux Power Holdings, investors can visit Investing.com/pro/FLUX. Additionally, by using the coupon code PRONEWS24, new subscribers can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable insights into the company's financial performance and market standing.
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