In a recent transaction, Bradley Allen Kreger, the Interim CEO of Velo3D, Inc. (NYSE:VLD), sold a number of shares in the company. On May 15, 2024, Kreger disposed of 10,735 shares of Velo3D common stock at an average price of $0.2306 per share, totaling approximately $2,475. This sale was executed for the purpose of covering tax liabilities and associated broker fees upon the settlement of Restricted Stock Units (RSUs), as noted in the footnotes of the filing.
Velo3D, a company specializing in specialized industrial machinery, is incorporated in Delaware and operates out of Fremont, California. The company, formerly known as JAWS Spitfire Acquisition Corp, underwent a name change from Spitfire Acquisition Corp in September 2020.
The RSUs mentioned in the transaction are a form of compensation that represents a contingent right to receive shares of the company's common stock upon settlement, at no cost to the recipient. According to the filing, the RSUs vested partially on February 15, 2024, with further vesting scheduled quarterly until fully vested, contingent upon Kreger's continued service.
Kreger's role as both a director and an officer of the company places him in a position of significant responsibility, overseeing the strategic direction and management of Velo3D as it navigates the competitive landscape of the industrial machinery sector.
Investors and market watchers often look to insider transactions such as these for signals about executive confidence and company health, although such sales are also common for personal financial management reasons, such as the tax obligations cited in this instance.
Following the sale, Kreger's direct ownership in Velo3D stands at 213,464 shares of common stock. The company's stock, traded under the ticker VLD, continues to be an area of interest for those following the tech and industrial machinery markets.
InvestingPro Insights
In light of the recent insider transaction by Velo3D's Interim CEO, Bradley Allen Kreger, it's prudent to look at the company's financial health and market performance through the lens of InvestingPro data and tips. Velo3D (NYSE:VLD) shows a market capitalization of $64.57 million, indicating its size within the specialized industrial machinery sector. However, the company's financial metrics suggest challenges, with a negative price-to-earnings (P/E) ratio of -0.37, reflecting that the company is not currently profitable.
Moreover, Velo3D's revenue has seen a significant decline over the last twelve months as of Q1 2024, with a -35.02% change, which may raise concerns about the company's sales growth trajectory. The gross profit margin stands at an alarming -52.22%, underscoring the cost pressures the company is facing. These figures are particularly relevant in the context of Kreger's stock sale, as they provide a broader picture of the company's financial stability.
Turning to InvestingPro Tips, analysts have highlighted that Velo3D is quickly burning through cash and do not anticipate the company will be profitable this year. This aligns with the negative P/E ratio and may be a crucial factor for investors to consider. Additionally, the stock is currently in oversold territory according to the Relative Strength Index (RSI), which could suggest a potential rebound or at least a pause in the recent downward trend in the stock price.
For those interested in a deeper analysis, there are 17 additional InvestingPro Tips available for Velo3D, which can be accessed at https://www.investing.com/pro/VLD. To gain further insights into Velo3D's financials and stock performance, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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