In a recent move, Ben Volkow, director of Urgent.ly Inc. (NASDAQ:ULY), sold a portion of his holdings in the company. The transactions, which took place on September 5th and 6th, amounted to a total of $3,382 in stock. According to the latest SEC filing, Volkow sold shares at prices ranging from $0.8606 to $0.8698.
The first sale occurred on September 5th, with Volkow selling 1,101 shares at a weighted average price of $0.8606. The second sale, on September 6th, involved 2,800 shares sold at an average price of $0.8698. The prices for these shares varied within the reported ranges, with the first batch selling for between $0.8361 and $0.908, and the second batch for between $0.8123 and $0.9374.
It is noted in the filing that these sales were conducted under a prearranged Rule 10b5-1 trading plan, which Volkow had adopted on November 20, 2023. This plan allows company insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.
Following these transactions, Volkow's remaining stake in Urgent.ly Inc. consists of 515,751 shares after the first sale and 512,951 shares subsequent to the second sale. These sales represent a small fraction of Volkow's overall holdings in the company.
Investors and followers of Urgent.ly Inc. will likely be monitoring insider trading activity as an indicator of the company's health and the confidence that executives and directors have in the firm's future prospects.
In other recent news, Urgent.ly, a firm specializing in roadside assistance, has reported noteworthy developments. The company has expanded and renewed contracts with significant clients, which is a positive move after losing a major customer earlier this year. As part of these developments, Urgent.ly has also extended its partnership with a leading global automotive OEM to Canada for seven years, continuing to support the OEM's warranty roadside assistance program and post-warranty membership plans.
In addition, Urgent.ly has reaffirmed its commitment to long-term revenue growth, projecting a 20-30% increase, albeit at the lower end of this range. However, due to a shift in service mix and higher than expected operational expenditures, the company has revised its forecast for reaching non-GAAP operating income breakeven to the first quarter of 2025.
On the analysis front, Needham has maintained a Buy rating on Urgent.ly but lowered its price target from $5.00 to $2.00, reflecting a 5x multiple on the firm's revised FY26E adjusted EBITDA. This adjustment followed the company's second-quarter results and recent commentary.
Lastly, at the 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 upcoming fiscal year. These are the latest developments for Urgent.ly, as the company continues to navigate the business landscape.
InvestingPro Insights
As investors scrutinize the insider trading activity at Urgent.ly Inc. (NASDAQ:ULY), it's important to consider the company's financial health and market performance to gain a comprehensive view. Recent data from InvestingPro reveals critical metrics that could impact investor perception.
Notably, Urgent.ly has a market capitalization of a modest $12.1 million, highlighting its position as a smaller player in the market. The company's revenue for the last twelve months as of Q2 2024 stands at $165.73 million, reflecting a decline of 16.15% compared to the previous year. This downturn aligns with analysts' expectations of a sales decline in the current year, as mentioned in one of the InvestingPro Tips, and could be a contributing factor to insider sales.
Furthermore, Urgent.ly's gross profit margin for the same period is reported at 21.75%, which, while positive, suggests room for improvement, especially when considering the company's significant debt burden and cash burn rate—factors highlighted in the InvestingPro Tips. Additionally, the company's price has experienced a substantial drop over the last year, with a 1 Year Price Total Return of -83.06%, potentially influencing the director's decision to sell a portion of his holdings.
For investors interested in further analysis and insights, InvestingPro offers additional tips on Urgent.ly Inc., providing a deeper dive into the company's financials and market position. There are 12 more InvestingPro Tips available, which can be accessed to help investors make more informed decisions.
As the next earnings date approaches on November 12, 2024, market watchers will be keen to see if the company's performance aligns with these financial indicators and whether the insider trading activity signals a strategic realignment or a response to the company's current challenges.
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