Urban-gro, Inc. (NASDAQ:UGRO) director Lewis Wilks has recently increased his stake in the company through the purchase of additional shares. According to the latest filings, Wilks acquired a total of 20,000 shares of Urban-gro's common stock, valued at approximately $29,000.
The transactions took place over two consecutive days. On June 5, 2024, Wilks bought 10,000 shares at a price of $1.43 per share. He followed up the next day, June 6, with another purchase of 10,000 shares, this time at a slightly higher price of $1.47 per share. These transactions show a range in the purchase price, reflecting the stock's trading activity on the respective dates.
Following these buys, Wilks's total ownership in Urban-gro stands at 184,108 shares of common stock. The purchases by the director are a direct investment in the company, signaling his confidence in the potential growth and future performance of Urban-gro.
Urban-gro, based in Lafayette, Colorado, operates within the wholesale machinery, equipment, and supplies industry. The company's stock trades on the NASDAQ under the ticker symbol UGRO. Investors often monitor the buying and selling activity of company insiders, such as directors and executives, as it can provide insights into their perspective on the company's valuation and prospects.
The disclosed transactions were made public through the mandatory filings with the Securities and Exchange Commission. Shareholders and potential investors can view these filings for a detailed account of insider trading activity and to keep informed about significant changes in ownership among company insiders.
In other recent news, urban-gro, Inc. has reported a strong Q1 performance, surpassing its quarterly revenue guidance with $15.5 million and limiting its adjusted EBITDA loss to $0.3 million. Despite a decrease in revenue year-over-year, the company's financial health appears stable, with a focus on returning to positive adjusted EBITDA. These developments follow the company's recent appointment of Sadler, Gibb & Associates LLC as its new independent registered public accounting firm, a decision that underscores urban-gro's commitment to robust accounting practices.
In addition to these financial updates, urban-gro maintains a strong backlog at $99 million and upholds its full-year revenue guidance of over $84 million. As part of its operational efficiencies, the company has achieved $2.8 million in savings through productivity improvements and cost-cutting measures. On the other hand, the company has noted a decrease in Europe's demand for cannabis-related projects.
Despite industry fluctuations, urban-gro continues to navigate the landscape with strategic financial management. The company's resilience and adaptability have been demonstrated by its ability to exceed revenue guidance and minimize its EBITDA loss during a period of decreased revenue. With a substantial backlog and a focus on sectors with strong demand, urban-gro is well-positioned to capitalize on the evolving landscape of the cannabis industry and broader commercial sectors.
InvestingPro Insights
Urban-gro, Inc. (NASDAQ:UGRO) is capturing investor attention with insider trading activity, as director Lewis Wilks's recent share purchases signify a strong personal belief in the company's trajectory. While insider confidence can be a positive indicator, it is crucial for investors to consider the broader financial context of Urban-gro, which is reflected in real-time metrics from InvestingPro.
The company's market capitalization stands at a modest 18.35 million USD, suggesting it is a smaller player in the market, which often accompanies higher volatility. Indeed, one of the InvestingPro Tips for UGRO is that the stock generally trades with high price volatility. This aligns with the recent share price fluctuations that Wilks took advantage of when purchasing his additional shares.
Furthermore, Urban-gro's current P/E Ratio is -1.07, indicating that the company is not currently profitable, a situation that is not anticipated to change this year, as another InvestingPro Tip suggests. The gross profit margin for the last twelve months as of Q1 2024 stands at 15.03%, underscoring the company's struggles with profitability.
Despite these challenges, the director's increase in stake could be perceived as a bullish signal to some investors. For those considering a deeper analysis, InvestingPro offers a comprehensive list of additional tips, including insights on the company's debt levels, cash flow, and profitability over the last twelve months. With the use of coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
As of the latest data, the price of UGRO's shares at the previous close was 1.5 USD. While the company's stock has seen a significant price decline over the last three months, there has been a large price uptick over the last six months, which may indicate a turning point for the company's valuation in the eyes of some market participants.
Investors considering Urban-gro's stock should weigh these real-time metrics and InvestingPro Tips against their investment strategy and risk tolerance. For those looking to delve deeper into Urban-gro's financials and future prospects, additional tips are available at https://www.investing.com/pro/UGRO, providing a more comprehensive understanding of the company's performance and potential.
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