Urgent.ly Inc. (NASDAQ:ULY) director Ben Volkow recently sold a portion of his holdings in the company, according to the latest filings. The transactions, which took place on two separate occasions, involved a total of 500 shares of common stock, amounting to approximately $473.
On August 23, Volkow sold 300 shares at a weighted average price of $0.9341. The sales were executed in multiple transactions with prices ranging from $0.9114 to $0.9771. Following this sale, he then sold an additional 200 shares on August 26 at a weighted average price of $0.9651, with individual sales prices ranging from $0.9502 to $0.98.
These sales were conducted under a prearranged 10b5-1 trading plan, which Volkow had adopted on November 20, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on non-public, material information.
After these transactions, Volkow's direct ownership in Urgent.ly Inc. stands at 524,252 shares. The company, which specializes in computer processing and data preparation services, is incorporated in Delaware and has its business address in Vienna, VA.
Investors and followers of insider activity consider such sales as one of the many indicators to gauge the company's performance and insider sentiment. Urgent.ly Inc. has not commented on these transactions.
In other recent news, Urgent.ly has revealed its second-quarter results and some significant developments. The company, which specializes in roadside assistance, has renewed and expanded contracts with key customers, a move that follows the loss of a major client earlier this year. Needham has maintained a Buy rating on Urgent.ly but adjusted its price target from $5.00 to $2.00 in response to these developments.
In terms of financials, Urgent.ly anticipates long-term revenue growth in the range of 20-30%, albeit adjusted to the lower end of this spectrum. Operational expenditures exceeded expectations, and a shift in service mix squeezed gross margins, prompting the company to revise its forecast for reaching non-GAAP operating income breakeven to the first quarter of 2025.
The company also expanded its partnership with a leading global automotive OEM, extending services to Canada. This seven-year agreement supports the OEM's warranty roadside assistance program and post-warranty membership plans, enhancing efficiency and customer experience using Urgent.ly's digital platform and real-time data algorithms.
In other corporate developments, Urgent.ly's shareholders recently elected Class I directors and ratified the company's independent auditors for the upcoming fiscal year. These are the most recent developments for Urgent.ly, reflecting the company's ongoing efforts to expand its customer base and improve its financial performance.
InvestingPro Insights
In light of recent insider transactions at Urgent.ly Inc. (NASDAQ:ULY), it's important for investors to consider broader financial metrics and trends that could affect the company's stock performance. According to InvestingPro data, Urgent.ly Inc. has a market capitalization of just $12.76 million, indicating a relatively small size in the market. Furthermore, the company has been facing significant revenue challenges, with a revenue decline of over 16% in the last twelve months as of Q2 2024, which aligns with analysts' expectations of sales decline in the current year.
Two InvestingPro Tips that stand out for Urgent.ly Inc. are the company's significant debt burden and the fact that it is quickly burning through cash. These factors are critical for investors to consider, especially those looking at the long-term financial stability and operational efficiency of the company. With the company's short-term obligations exceeding its liquid assets, there is a heightened risk profile associated with Urgent.ly's financial health.
Moreover, the company's stock has experienced a substantial decline over various time frames, with a one-year price total return of -82.14%, which reflects the market's reaction to the company's financial performance and outlook. The company's low revenue valuation multiple and the poor free cash flow yield implied by its valuation are additional points of concern for potential investors.
For those interested in a deeper analysis, InvestingPro offers even more tips on Urgent.ly Inc., providing 12 additional insights available at https://www.investing.com/pro/ULY. These tips could further guide investment decisions and offer a comprehensive understanding of the company's financial position and future prospects.
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