FARO Technologies Inc. (NASDAQ:FARO) CFO Matthew Horwath sold a total of 175 shares of company stock on June 12, 2024, for an average price of $18.65 per share, amounting to over $3,000 in total. The transaction was part of a "sell-to-cover" operation to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs).
The sale was conducted in accordance with the company's policies for handling tax obligations resulting from RSU settlements. According to the footnote in the SEC filing, this was not a discretionary sale by Horwath, but a necessary step to fulfill tax requirements. Following the sale, Horwath still holds 29,974 shares of FARO Technologies, indicating a continued investment in the company's future.
FARO Technologies, headquartered in Lake Mary, Florida, specializes in measuring and controlling devices. The company's financial movements, particularly those of its executives, are closely watched by investors for insights into management's perspective on the company's valuation and prospects.
Investors and stakeholders in FARo Technologies can view the details of these transactions through the company's recent SEC Form 4 filing, which provides transparency on insider trades. As of the filing date of this report, Matthew Horwath's beneficial ownership stands as reported in the document, reflecting his current stake in the company after the reported transaction.
In other recent news, FARO Technologies reported robust financial results for the first quarter of 2024, surpassing its targets. The company announced a revenue of $84.2 million, non-GAAP earnings per share (EPS) of $0.09, and adjusted EBITDA of $5.6 million. Despite these strong results, the company remains cautious about the near-term outlook, particularly due to challenges in the Asia Pacific construction market and longer sales cycles in developed markets. The company's cash and short-term investment balance grew to $99.3 million. FARO Technologies also aims to expand its served addressable market by 40% through R&D and has announced a stock grant program to align employee interests with long-term goals. For the second quarter, the company projects its revenue to be between $79 million and $87 million, with non-GAAP EPS ranging from -$0.08 to $0.12. These recent developments illustrate the company's performance and strategic direction.
InvestingPro Insights
Amidst the recent insider transaction by FARO Technologies Inc.'s CFO, insightful data from InvestingPro provides a broader context into the company's financial health and market position. With a market capitalization of approximately $330.92 million, FARO operates with a price-to-earnings (P/E) ratio of -7.69, indicating that the market currently does not expect earnings from the company. This is further underscored by an adjusted P/E ratio for the last twelve months as of Q1 2024, which sits at -11.08, suggesting that investors are anticipating lower earnings or are valuing the company's earnings more negatively compared to the past.
Despite this, FARO showcases a robust gross profit margin of 49.69% over the last twelve months as of Q1 2024, reflecting the company's ability to retain a significant portion of its sales revenue after accounting for the cost of goods sold. However, it's important to note that FARO has not been profitable over the last twelve months, with an operating income margin of -4.39% and a return on assets of -8.36%, indicating challenges in generating profit from its operations and assets. Still, analysts predict that the company will turn profitable this year, which may be a sign of positive momentum.
InvestingPro Tips for FARO Technologies highlight several key points: the company's liquid assets exceed its short-term obligations, suggesting a strong liquidity position. Additionally, FARO operates with a moderate level of debt, which could be favorable for financial stability. On the flip side, the company does not pay a dividend, which might be a consideration for income-focused investors.
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