In a recent transaction, Ben Volkow, a director at Urgent.ly Inc. (NASDAQ:ULY), sold shares of the company's common stock, signaling a notable change in his holdings. The sale, which took place over two separate days, involved a total of 1,400 shares, resulting in over $1,200 in proceeds for Volkow.
On August 21, 2024, Volkow sold 1,100 shares at a weighted average price of $0.9106, with individual transactions ranging from $0.91 to $0.9235. The following day, he sold an additional 300 shares at a weighted average price of $0.9541, with prices varying between $0.9511 and $0.9572. After these transactions, Volkow's ownership in Urgent.ly Inc. stood at 524,752 shares.
The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which Volkow had adopted on November 20, 2023. This plan allows company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, providing a legal defense against accusations of insider trading.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of the company's directors, officers, and any beneficial owners holding more than 10% of a class of the company's equity securities.
Investors and the market often monitor insider trades for insights into a company's health and the confidence that executives and directors have in the company's future. While the reasons behind Volkow's decision to sell shares are not publicly known, the disclosed trades offer a glimpse into the trading behavior of Urgent.ly Inc.'s insiders.
In other recent news, Urgent.ly, a provider of digital roadside and mobility assistance, has reported significant developments. The company unveiled its second-quarter results, leading Needham to maintain a Buy rating on Urgent.ly but adjust its price target from $5.00 to $2.00. This change follows the company's revised anticipation of long-term revenue growth, now expected to be at the lower end of the 20-30% range.
Furthermore, Urgent.ly has renewed and expanded contracts with key customers and extended its partnership with a leading global automotive OEM to Canada. This seven-year agreement will continue to support the OEM's warranty roadside assistance program and post-warranty membership plans, using Urgent.ly's technology stack to improve efficiency and customer experience.
In other developments, the company's shareholders have elected Class I directors and ratified the company's independent auditors for the upcoming fiscal year. Gina Domanig and Ryan Pollock were elected as Class I directors, and CohnReznick LLP was unanimously approved as the independent registered public accounting firm for the fiscal year ending December 31, 2024. These recent events highlight Urgent.ly's ongoing efforts to maintain growth and deliver value to its customers and investors.
InvestingPro Insights
As investors assess the recent insider sales at Urgent.ly Inc. (NASDAQ:ULY), it is crucial to consider the company's financial health and market performance. According to InvestingPro data, Urgent.ly operates with a market capitalization of just 12.83 million USD. This relatively small market cap could indicate a higher risk profile or a potential growth opportunity, depending on the company's broader financial picture.
The company's stock has experienced a significant decline over the past year, with a 1-year price total return of -82.04%, reflecting a price that is just 7.95% of its 52-week high. Moreover, Urgent.ly's revenue has seen a decrease of 16.15% over the last twelve months as of Q2 2024, aligning with analysts' anticipation of a sales decline in the current year, as per InvestingPro Tips. This contraction in revenue growth is a critical factor for investors to consider when evaluating the company's future prospects.
Another point to note is that Urgent.ly's gross profit margin stands at 21.75%, which might be considered weak compared to industry standards. This is supported by an InvestingPro Tip highlighting the company's struggle with gross profit margins. Investors might see this as a red flag, suggesting that the company needs to improve its cost management or pricing strategies to enhance profitability.
For those looking to delve deeper into Urgent.ly's financials and performance metrics, InvestingPro offers additional tips to help investors make informed decisions. Currently, there are 12 more InvestingPro Tips available for Urgent.ly, providing a comprehensive analysis of the company's financial health and stock performance.
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