FREMONT, CA – Velo3D, Inc. (NYSE:VLD) CEO Bradley Allen Kreger recently engaged in stock transactions involving the company's shares, according to a regulatory filing. On July 19, 2024, Kreger sold a total of 341 shares of common stock at an average price of $3.05 per share, amounting to $1040. The transaction was executed to cover tax liabilities and broker fees associated with the settlement of restricted stock units (RSUs).
The sale comes in the wake of Kreger acquiring 899 shares through the vesting of RSUs on July 18, 2024. These units represent a contingent right to receive shares of Velo3D's common stock, which vest in 12 equal monthly installments over one year, beginning January 18, 2024, and are contingent upon Kreger's ongoing service at the company.
Following the sale, Kreger's direct ownership in Velo3D stands at 7438 shares of common stock, as per the filing. Additionally, the CEO still holds 4491 RSUs that will convert into common stock upon vesting, assuming continued service with the company.
These transactions are part of the normal course of business for executives who receive equity compensation. The sale of shares to cover tax obligations is a common practice and does not necessarily indicate a lack of confidence in the company's prospects.
Investors and market watchers often look to the trading activities of top executives for insights into their perspective on the company's future. However, it's important to consider the context of such transactions, which may be motivated by personal financial planning rather than views on the company's valuation or performance.
Velo3D, headquartered in Fremont, California, specializes in special industry machinery and has been expanding its presence in the additive manufacturing sector. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol VLD.
In other recent news, Velo3D has reported significant developments. The company has entered an agreement to reduce the exercise price of existing warrants, potentially raising around $1.62 million if all warrants are exercised. In a move to bolster operational efficiencies, Velo3D also announced a 30% workforce reduction, affecting approximately 63 employees. Despite this, the company's Q1 2024 revenues reached $10 million, albeit with a negative gross margin of 29%.
Brad Kreger has been confirmed as the permanent CEO, following his successful interim stint. Under his leadership, Velo3D saw a significant realignment of its operations and a marked reduction in operating expenses. Additionally, the company's board of directors approved a 1-for-35 reverse stock split, aiming to meet the New York Stock Exchange's minimum share price requirement for continued listing.
The company has been notified of non-compliance with certain NYSE market capitalization and stockholders' equity requirements. In response, Velo3D plans to submit a proposal to regain compliance with the listing standards. However, the company remains optimistic about its future performance, projecting a full-year revenue between $80 million to $95 million, and expecting improvements from the defense, space, and aerospace sectors.
InvestingPro Insights
Velo3D, Inc. (NYSE:VLD) has recently been the subject of significant financial scrutiny. According to InvestingPro data, Velo3D's market capitalization stands at a modest $10.65 million, with a very low Price / Book ratio of 0.21 as of the last twelve months leading up to Q2 2024. This indicates that the stock is trading at a level close to its book value, which could be a point of interest for value investors. Additionally, the company's recent revenue figures show a challenging period, with a year-over-year decline of 53.63% in revenue.
InvestingPro Tips highlight several critical aspects of Velo3D's financial health and market performance. Analysts have flagged the company for operating with a significant debt burden and question its ability to make interest payments on its debt. This concern is compounded by the fact that the company is quickly burning through cash. On a potentially brighter note, analysts do anticipate sales growth in the current year, which could signal a turnaround if the company manages to capitalize on this growth effectively.
Market participants have also noted the stock's price volatility, with Velo3D's stock price having taken a substantial hit over the past week. The stock is also trading near its 52-week low, which, when combined with a Relative Strength Index (RSI) suggesting the stock is in oversold territory, may attract contrarian investors looking for a potential rebound.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights on Velo3D, with a total of 23 InvestingPro Tips available, each providing a deeper dive into the company's financial nuances and market performance. These tips can be accessed by visiting https://www.investing.com/pro/VLD, offering a valuable resource for those looking to make informed decisions regarding their investment in Velo3D.
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