In a recent transaction on June 13, Roger HD Lacey, a director of Pineapple Energy Inc. (NASDAQ:PEGY), purchased 12,250 shares of the company's common stock, investing a total of $20,212. The shares were acquired at a price of $1.65 each, according to the latest SEC filing.
This purchase follows a significant corporate action as the number of shares beneficially owned by Lacey now reflects adjustments for Pineapple Energy's 1-for-15 reverse stock split that took effect on June 12, 2024. The updated ownership total for Lacey post-transaction stands at 17,009 shares of common stock.
The Form 4 filing also noted the disposition of all shares held by Lacey indirectly through an Employee Stock Ownership Plan (ESOP), a move that was exempt from Section 16(b) of the Securities Exchange Act of 1934, as per Rule 16b-3(c).
Investors often monitor insider buying and selling as it can provide insights into a company's financial health and management's confidence in the company's future prospects. Pineapple Energy, headquartered in Minnetonka, Minnesota, operates within the telecom apparatus industry and has recently undergone a name change from Communications Systems (NASDAQ:PEGY) Inc.
The transaction was officially signed off by Christine G. Long, Attorney-in-fact for Roger H.D. Lacey, on June 14, 2024.
In other recent news, Pineapple Energy, a solar and battery storage solutions firm, recently reported its Q1 2024 results. Despite facing challenges, the company saw an increase in net income from continuing operations by 146%, reporting $1.2 million for the quarter. However, there was a decline in both revenue and gross profit compared to Q1 2023.
The company also experienced a decrease in residential kilowatts installed and delays in commercial pipeline projects. Despite these setbacks, Pineapple Energy remains committed to achieving profitability by the second quarter of 2024 and is actively pursuing growth through the acquisition of local and regional rooftop solar companies.
In terms of finances, the company reported that its cash and equivalents totaled $3.3 million, which includes $1.5 million in restricted cash and investments. To ensure sufficient capital for the remainder of 2024, Pineapple Energy is actively fundraising. These are some of the recent developments for the company.
InvestingPro Insights
Amidst the insider activity at Pineapple Energy Inc. (NASDAQ:PEGY), the market is showing a complex picture of the company's financial status. With a notably small market capitalization of 9.41 million USD, Pineapple Energy's financials reveal a challenging landscape. The company's price-to-earnings (P/E) ratio stands at a negative -0.31 as of the last twelve months leading up to Q1 2024, highlighting that the company is not currently profitable. This is further evidenced by the fact that analysts do not expect the company to be profitable this year, an InvestingPro Tip that aligns with the negative earnings per share (EPS) reported at -12.57 USD.
Despite a robust revenue growth of 43.42% in the last twelve months as of Q1 2024, Pineapple Energy's short-term financial health appears precarious, with short term obligations exceeding its liquid assets. This is a critical InvestingPro Tip for potential investors to consider, especially in the context of the director's recent stock purchase. Moreover, the stock has experienced significant volatility, with a 1-week price total return at a sharp decline of -33.97%, yet showing a strong rebound over the last month at 65.25%. This volatility is a hallmark trait of the company's stock, as noted by its historical performance.
For investors intrigued by Pineapple Energy's recent insider trading and looking to make an informed decision, InvestingPro offers additional insights. There are currently 15 more InvestingPro Tips available that could help in assessing the company's future movements. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a deeper understanding of Pineapple Energy's investment potential.
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