Interim Chief Executive Officer Bradley Allen Kreger of Velo3D, Inc. (NYSE:VLD) recently executed a stock sale, according to the latest SEC filings. The transaction involved the sale of 11,859 shares of common stock at a price of $0.1999 per share, totaling approximately $2,370.
The sale, dated May 20, 2024, was conducted for the purpose of covering Kreger's tax liability and broker fees associated with the settlement of restricted stock units. This was indicated in the footnotes of the SEC filing, which also stated that the restricted stock unit settlement had been reported in a previous Form 4 filed on May 21, 2024.
Following the transaction, Kreger's holdings in Velo3D, Inc. decreased, leaving him with a direct ownership of 233,051 shares in the company. The sale represents a financial move to meet obligations rather than a reflection of the executive's outlook on the company's future performance.
Investors often keep a close eye on insider transactions as they can provide insights into an executive's view of the company's valuation and prospects. However, in this case, the transaction appears to be a routine financial decision rather than an indicator of the company's operational performance or future.
Velo3D, Inc., with its specialized industrial machinery sector designation, remains a key player in its field, and investors will be watching closely to see how executive transactions and company performance align in the coming quarters.
InvestingPro Insights
Velo3D, Inc. (NYSE:VLD) has been navigating challenging financial waters as reflected in recent market data and analysis. With a market capitalization of approximately $56.28 million and a concerning P/E ratio of -0.32, the company's financial health is under scrutiny. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at an even lower -0.43, further underscoring the company's struggles.
Investors should note that Velo3D has experienced a significant decline in revenue growth, with a -35.02% change over the last twelve months as of Q1 2024. Moreover, the company's gross profit margin during the same period was deeply negative at -52.22%, reflecting the costs outweighing revenues. These metrics are crucial as they provide a snapshot of the company's ability to manage its finances and maintain profitability.
Adding to the concerns, two InvestingPro Tips highlight the company's financial challenges: Velo3D operates with a significant debt burden and may have trouble making interest payments on its debt. These factors are critical for investors to consider, especially when evaluating the company's long-term viability and growth potential.
On a more positive note, analysts anticipate sales growth in the current year, suggesting there may be a light at the end of the tunnel for Velo3D. However, the stock has been volatile, with significant price drops over various periods, including an -18.71% one-week total return and an -89.16% one-year total return as of a recent date in 2024. This volatility is something investors should watch carefully.
For those interested in a more in-depth analysis, there are 21 additional InvestingPro Tips available for Velo3D, which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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