Faro Technologies Inc. (NASDAQ:FARO) director Yuval Wasserman recently sold shares of the company, according to the latest SEC filings. The transactions, which took place on June 14 and June 17, involved the sale of a total of 20,224 shares of Faro Technologies common stock, with the sales amounting to over $335,000.
On June 14, Wasserman sold 10,075 shares at a price of $16.64 per share. Following this transaction, he sold another 10,149 shares on June 17 at a slightly lower price of $16.52 per share. These sales were conducted under a "sell-to-cover" transaction to satisfy tax withholding obligations related to the vesting of Restricted Stock Units (RSUs). The RSUs in question were previously reported and are part of the company's compensation policy for its directors. It's noted that these sales were not discretionary but rather a part of the company's established "sell to cover" policy.
In conjunction with these sales, Wasserman also acquired 10,404 RSUs, which are set to vest on the day prior to the issuer's next annual meeting of stockholders. These RSUs were granted at no cost to the director and therefore reported with a transaction total of $0.
After the reported transactions, Wasserman's ownership in the company stands at 193,625 shares of common stock. Faro Technologies, known for its expertise in measuring and controlling devices, has not provided any further details or comments regarding these transactions.
Investors and shareholders of Faro Technologies often monitor the buying and selling activities of company insiders like Wasserman, as these can provide insights into the company's performance and the confidence level of its leadership.
In other recent news, FARO Technologies reported first-quarter financial results for 2024 that surpassed its targets. The company announced $84.2 million in revenue, non-GAAP earnings per share (EPS) of $0.09, and an adjusted EBITDA of $5.6 million. Despite these strong results, FARO remains cautious about the near-term outlook, citing challenges in the Asia Pacific construction market and longer sales cycles in developed markets.
FARO Technologies also reported a GAAP net loss of $7.3 million or $0.38 per share, but a non-GAAP net income of $1.7 million. The company's cash and short-term investment balance has grown to $99.3 million. For the second quarter, FARO projects revenue to be between $79 million and $87 million, with non-GAAP EPS ranging from -$0.08 to $0.12.
The company has seen strong demand across various industries, with significant manufacturing orders in the Asia Pacific region. Operational efficiency improvements and the positive reception of new products, including the Orbis mobile scanner, have also positively impacted FARO's performance. The company 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.
InvestingPro Insights
As investors review the recent insider transactions by Faro Technologies Inc. (NASDAQ:FARO) director Yuval Wasserman, it's crucial to consider the broader financial context of the company. According to real-time data from InvestingPro, Faro Technologies holds a market capitalization of $322.85 million, reflecting the scale of the company in the competitive tech sector. Despite facing challenges in profitability over the last twelve months, analysts are optimistic, predicting a return to profitability for the company this year. This outlook is particularly relevant for shareholders following Wasserman's recent share sales and RSU acquisitions.
InvestingPro Tips for Faro Technologies highlight that the company's liquid assets surpass its short-term obligations, suggesting a solid liquidity position. Additionally, Faro operates with a moderate level of debt, which could indicate a balanced approach to leveraging and financial risk management. However, it's noteworthy that the company does not pay dividends, which might influence investment decisions for those seeking income-generating stocks.
From a valuation standpoint, the adjusted P/E ratio for the last twelve months as of Q1 2024 is -10.78, which, coupled with a PEG ratio of 0.87, may offer insights into the company's future growth potential relative to earnings. Furthermore, the price to book ratio stands at 1.23, which can be a point of analysis for assessing the company's asset value against its market valuation.
For investors seeking a deeper dive into Faro Technologies' financials and future projections, there are additional InvestingPro Tips available at: https://www.investing.com/pro/FARO. These tips can provide valuable guidance, especially in light of recent insider activity. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could shape investment strategies.
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