Outbrain Inc. (NASDAQ:OB) Co-Founder and Board Chair, Galai Yaron, has sold a total of $133,331 worth of company stock, according to recent SEC filings. The transactions took place over two separate days, with shares sold at prices ranging from $4.95 to $5.02.
On June 28, 2024, Yaron sold 25,740 shares of Outbrain Inc. at an average price of $4.987 per share. Following this sale, he then sold an additional 1,000 shares on July 1, 2024, at an average price of $4.966 per share. These sales were executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
The sales were part of a series of planned transactions that were established on November 14, 2023, and have been disclosed in line with regulatory requirements. The total number of shares sold across these transactions amounted to 26,740, netting the reported total value of $133,331.
Following these transactions, Yaron remains a significant shareholder of Outbrain Inc., with direct ownership of 3,544,736 shares after the sales. Additionally, through Galai Investments, LLC, of which Yaron is the managing member and owns a 55% membership interest, he indirectly holds 99,992 shares of the company's common stock.
Investors and followers of Outbrain Inc. can access full details of the sales, including the number of shares sold at each separate price point, upon request to the issuer or the SEC, as per the footnotes in the SEC filing. The disclosure of these sales provides transparency to the market and ensures that all material information is available to the public and shareholders.
In other recent news, Outbrain has made significant strides despite a challenging market. The company reported its Q1 2024 earnings, with a gross profit of $52.2 million, surpassing its adjusted EBITDA guidance at $1.4 million. Although there was a 6% year-over-year decline in revenue to approximately $217 million, Outbrain generated a positive free cash flow and maintained its full-year guidance.
The company has also launched strategic initiatives, such as the introduction of Onyx in Japan and a focus on artificial intelligence for business efficiency. These efforts are part of Outbrain's ambition to become a dominant gateway for advertisers on the open internet. The company's full-year 2024 guidance remains unchanged at $238 million to $248 million for gross profit and $30 million to $35 million for adjusted EBITDA.
Outbrain has also welcomed Greg Archibald as the General Manager & Senior Vice President of Sales in the United States. With over twenty years of experience in sales leadership roles at notable companies, Archibald is expected to lead the company's US sales strategies and enhance the company's offerings to enterprise and direct-to-consumer brands. These recent developments underscore Outbrain's commitment to its market expansion and the delivery of innovative solutions that foster connections between brands and engaged audiences online.
InvestingPro Insights
In light of the recent insider transactions at Outbrain Inc. (NASDAQ:OB), investors might be curious about the company's financial health and market performance. According to data from InvestingPro, Outbrain Inc. holds more cash than debt on its balance sheet, which is a positive signal for the company's financial stability. Additionally, the company has been recognized for its aggressive share buyback strategy, reflecting management's confidence in the company's value.
From a valuation standpoint, Outbrain Inc. is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 22.67 for the last twelve months as of Q1 2023. This could indicate that the stock is undervalued compared to its growth potential. Moreover, the company's valuation implies a strong free cash flow yield, which could be attractive to investors looking for companies with the ability to generate cash.
On the performance front, Outbrain Inc. has seen a strong return over the last three months, with a 3-month price total return of 18.93%. This robust performance is a testament to the company's resilience and might be a point of interest for growth-focused investors.
For those looking to delve deeper into Outbrain Inc.'s financials and market prospects, InvestingPro offers additional tips and insights. There are currently 14 additional InvestingPro Tips available for Outbrain Inc., which can be accessed through InvestingPro. To make the most of these insights, readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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