Velo3D, Inc. (NYSE:VLD) CEO Bradley Allen Kreger recently engaged in transactions involving the company's stock, according to the latest SEC filings. Kreger sold 327 shares of common stock at a price of $3.16 per share, totaling approximately $1,033. This sale was executed on June 27, 2024, and was specifically carried out to cover tax liabilities and broker fees associated with the settlement of restricted stock units, as indicated in the footnotes of the filing.
On June 18, Kreger also acquired 899 shares of Velo3D common stock, which were obtained through the vesting of restricted stock units (RSUs). Each RSU represents a right to receive one share of common stock at no cost upon settlement. These transactions follow a 1-for-35 reverse stock split that the company effected on June 13, 2024, which is reflected in the adjusted share ownership totals.
Post these transactions, Kreger's total direct ownership in the company stands at 7,229 shares of common stock. It is important to note that the RSUs vest in 12 equal monthly installments over one year, beginning January 18, 2024, and are contingent upon Kreger's continued service to the company on each vesting date.
Velo3D, headquartered in Fremont, California, operates within the special industry machinery sector, offering advanced 3D printing solutions for various industries. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol VLD.
In other recent news, Velo3D, a prominent metal additive manufacturing firm, has announced a 1-for-35 reverse stock split, aimed at fulfilling the New York Stock Exchange's minimum share price requirement for continued listing. This strategic move will not alter the number of authorized shares or the common stock's par value. Instead, it will convert every 35 shares of Velo3D's common stock into one new share, reducing the outstanding shares from approximately 297 million to about 8.5 million.
The company has also made significant strides in its financial performance, with its first-quarter revenue for 2024 hitting the $10 million mark. Despite a negative gross margin of 29%, Velo3D is optimistic about turning this around in the next quarter and achieving sustainable profitability by year-end. The company reported a GAAP net loss of $28.3 million and a non-GAAP net loss of $20.2 million for the quarter, but anticipates improvements in revenue, margin, and operating expenses throughout 2024.
These recent developments highlight Velo3D's focus on improving operating efficiency, margin, and cash flow. The company projects a full-year revenue between $80 million to $95 million and is targeting over 30% sequential revenue growth in the second quarter. With improvements noted in Q1 bookings, particularly from the defense, space, and aerospace sectors, Velo3D expects these sectors to positively influence the company's performance throughout 2024.
InvestingPro Insights
As Velo3D, Inc. (NYSE:VLD) navigates through its financial and operational challenges, recent data from InvestingPro provides a deeper look into the company's performance and market position. With a market capitalization of 26.66 million USD, Velo3D's financial health is under scrutiny, especially considering its negative price-to-earnings (P/E) ratios, with the latest being -0.2 as of the last twelve months leading up to Q1 2024. This indicates that the company is not currently generating profits relative to its share price.
The company's revenue figures also raise concerns, with a significant year-over-year decline of 35.02% as of the last twelve months leading up to Q1 2024. This is further compounded by a quarterly revenue growth drop of 63.33% in Q1 2024. Gross profit margins have been deeply affected, sitting at a concerning -52.22% during the same period. These figures suggest that Velo3D is facing substantial challenges in generating profitable sales and maintaining cost efficiency.
InvestingPro Tips highlight that Velo3D operates with a significant debt burden and may have trouble making interest payments on its debt. Additionally, the company's stock price has been highly volatile, with a staggering 95.81% drop in the 1-year price total return as of the current year. Nonetheless, analysts anticipate sales growth in the current year, which could offer a glimmer of hope for potential investors.
For those interested in gaining more insights and tips on Velo3D, InvestingPro offers additional information, including a total of 20 InvestingPro Tips for VLD, which can be found at: https://www.investing.com/pro/VLD. Readers looking to access these tips can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a comprehensive tool for informed investment decisions.
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