In a recent transaction, Neil Gagnon, a significant shareholder of SecureWorks Corp (NASDAQ:SCWX), has increased his stake in the company with the purchase of shares valued at over $100,000. The transactions, which took place on April 23, 2024, involved buying shares at prices ranging from $5.9150 to $6.00.
Gagnon acquired a total of 14,823 shares of SecureWorks Corp's common stock. Following these purchases, his direct holdings in the company have risen significantly. The transactions reflect Gagnon's continued commitment to the company, where he holds a considerable position.
SecureWorks Corp, a leader in prepackaged software services, is headquartered in Atlanta, Georgia, and operates under the jurisdiction of Delaware. The company's business address is One Concourse Parkway, Suite 500, Atlanta, GA 30328, and it can be reached by phone at 404-929-1810.
Investors and the market often watch insider buying activity as it may signal confidence in the company's future prospects. The details of the purchases, including the specific number of shares bought at each price point within the range, are available upon request from the issuer, any security holder of the issuer, or the Securities and Exchange Commission staff.
Gagnon's investments are managed through various entities and accounts, including Gagnon Advisors, LLC and Gagnon Securities LLC, where he serves as the Chief Executive Officer and managing member, respectively. His interest in the securities is limited to his pecuniary interest in these accounts.
The recent acquisition by Gagnon is a noteworthy event for SecureWorks Corp and its stakeholders, reflecting an insider's increasing investment in the company's stock.
InvestingPro Insights
Following Neil Gagnon's notable increase in his stake in SecureWorks Corp (NASDAQ:SCWX), the company's financial health and market performance provide additional context to this insider activity. According to InvestingPro data, SecureWorks Corp currently holds a market capitalization of $513.48 million, with a Price to Earnings (P/E) ratio standing at -5.86. This negative P/E ratio is indicative of the company's lack of profitability over the last twelve months, as of Q4 2024. Additionally, the company's revenue has seen a decline, with a -21.06% change in the last twelve months and a -22.7% quarterly revenue growth as of Q4 2024.
From the perspective of an insider like Gagnon, these metrics may be weighed against other factors such as the company's balance sheet strength. One of the InvestingPro Tips highlights that SecureWorks Corp holds more cash than debt, which could be a sign of financial stability. On the other hand, the company's short-term obligations exceed its liquid assets, which may present a liquidity risk.
Despite the recent decline in sales, analysts predict that SecureWorks Corp will be profitable this year, which could be a factor influencing insider confidence. However, it is worth noting that the company does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
For those interested in a deeper dive into SecureWorks Corp's financials and insider activity, InvestingPro offers additional tips and insights. There are currently 6 more InvestingPro Tips available for SecureWorks Corp, which can be accessed at https://www.investing.com/pro/SCWX. Readers looking to subscribe to InvestingPro for a more comprehensive analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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