In a recent transaction, Matthew Tappin, President of Asset Management at Stem, Inc. (NYSE:STEM), sold 1,388 shares of the company's common stock. The transaction took place on May 28, 2024, with the shares being sold at a price of $1.32 each, amounting to a total value of over $1,800.
The sale was conducted under a pre-arranged trading plan, known as a Rule 10b5-1 trading plan, which Tappin had adopted on November 13, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a legal defense against claims of insider trading.
Following the sale, Tappin still owns a total of 16,635 shares of Stem, Inc. The transaction was publicly filed with the Securities and Exchange Commission, and the details were disclosed as required by the SEC regulations.
Investors and the market often keep a close eye on insider transactions as they can provide insights into an insider’s perspective on the company's future. However, these transactions are not necessarily indicative of a company's long-term performance and can be subject to various personal financial considerations of the individual insider.
Stem, Inc. is a company operating in the miscellaneous electrical machinery, equipment, and supplies industry, and is based in San Francisco, California. The company's shares are traded on the New York Stock Exchange under the ticker symbol STEM.
InvestingPro Insights
In light of the recent insider transaction at Stem, Inc., a glance at the company's financial health and market performance through InvestingPro data offers valuable context for investors. Stem's market capitalization stands at a modest $222.27 million, reflecting a niche player in the electrical machinery and equipment sector. Despite analysts' expectations of sales growth for the current year, the company's financial metrics suggest challenges ahead. Stem's price-to-earnings (P/E) ratio is negative, at -1.03 for the last twelve months as of Q1 2024, highlighting that the company is not currently profitable.
Moreover, the stock has experienced significant volatility, with a 1-month total price return of -30.98% as of the date provided. This is consistent with the InvestingPro Tips that indicate the stock generally trades with high price volatility and has fared poorly over the last month. Additionally, with a gross profit margin of -4.22% for the last twelve months as of Q1 2024, the company's profitability in terms of operational efficiency appears strained.
For investors seeking a deeper dive into Stem, Inc.'s financials and market performance, InvestingPro offers 17 additional tips to provide a comprehensive analysis. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These tools can help investors make more informed decisions by considering the company's significant debt burden, cash burn rate, and the broader implications of insider selling activities.
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