In a recent transaction, Ben Volkow, a director at Urgent.ly Inc. (NASDAQ:ULY), sold a total of $3,320 worth of company stock. The sales occurred over two days, with the prices of the shares ranging from $0.811 to $0.8767.
On the first day, Volkow sold 2,400 shares at a weighted average price of $0.8767, with individual sales prices varying between $0.8649 and $0.9082. The following day, an additional 1,500 shares were sold at an average price of $0.811, with the range of prices for these transactions falling between $0.7903 and $0.88.
The transactions were executed in accordance with a pre-arranged trading plan under Rule 10b5-1, which was adopted by Volkow on November 20, 2023. This rule allows company insiders to set up a trading plan for selling stocks they own in a way that avoids accusations of insider trading, by scheduling predetermined trading actions that take place regardless of any subsequent nonpublic information the insider might receive.
Following these transactions, Volkow's ownership in Urgent.ly Inc. stands at 516,852 shares. The sales are part of normal stock trading activities and are reported to the Securities and Exchange Commission, which provides transparency into the trading practices of corporate insiders.
Investors often monitor insider transactions as they can provide insights into an insider's view of the company's value. However, it's important to note that these transactions can be motivated by a variety of personal financial considerations and do not necessarily indicate a change in company prospects.
Urgent.ly Inc., headquartered in Vienna, Virginia, operates within the computer processing and data preparation industry. The company has been expanding its reach in technology solutions, and these transactions come as part of the regular financial activities of its executives and directors.
In other recent news, Urgent.ly, a provider of digital roadside and mobility assistance, has been the focus of several developments. The company's second-quarter financial results prompted Needham to maintain a Buy rating on Urgent.ly's stock, albeit with a lowered price target of $2.00. This adjustment was based on factors such as a squeeze in gross margins and higher than expected operational expenditures, leading Urgent.ly to revise its forecast for reaching non-GAAP operating income breakeven to the first quarter of 2025.
Urgent.ly also announced the renewal and expansion of contracts with key customers, helping to offset concerns following the loss of a major client earlier this year. The company anticipates long-term revenue growth in the range of 20-30%, albeit adjusted to the lower end of this spectrum.
In a significant move, Urgent.ly expanded its partnership with a leading global automotive OEM, extending its services to Canada. This seven-year agreement involves Urgently supporting the OEM's warranty roadside assistance program and post-warranty membership plans.
At the company's 2024 Annual Meeting of Stockholders, Gina Domanig and Ryan Pollock were elected as Class I directors, and CohnReznick LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024. These are the latest developments in Urgent.ly's journey.
InvestingPro Insights
As Urgent.ly Inc. (NASDAQ:ULY) continues to navigate the market, a closer look at the company's financial health and stock performance reveals several key points. With a market capitalization of just $11.23 million, Urgent.ly is a relatively small player in the industry. The company's stock has experienced significant volatility, reflected in a one-year price total return of -84.28%, indicating a steep decline in its share price over the past year.
The financial data from the last twelve months up to Q2 2024 shows that Urgent.ly has been grappling with challenges. The company recorded a revenue decline of 16.15%, which aligns with an InvestingPro Tip that analysts anticipate a sales decline in the current year. This decline in revenue is further compounded by a gross profit margin of 21.75%, which, while not negligible, suggests that the company suffers from weak gross profit margins, another insight provided by InvestingPro Tips.
Investors considering Urgent.ly should note that the company's stock is trading at a low revenue valuation multiple and that its short-term obligations exceed its liquid assets. These factors, combined with a significant recent drop in stock price—15.55% over the last week and 21.98% over the last month—could be indicative of underlying financial pressures. For a more comprehensive analysis, including additional InvestingPro Tips that could further inform investment decisions, interested parties can explore InvestingPro's full suite of tips, which includes 14 tips for Urgent.ly Inc.
The price per share at the previous close stood at $0.84, which is notably lower than both the InvestingPro Fair Value estimate of $1.12 and the analyst target fair value of $2.00. This discrepancy suggests that the market is currently undervaluing the stock based on these assessments. Urgent.ly's next earnings date is set for November 12, 2024, which will be a critical moment for investors to assess the company's performance and future outlook.
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