Velo3D, Inc. (NYSE:VLD) has reported a recent transaction involving its Interim CEO, Bradley Allen Kreger, who sold shares of the company's common stock. The transaction took place on April 18, 2024, and was disclosed in a filing with the Securities and Exchange Commission on April 22, 2024.
According to the filing, Kreger disposed of 13,604 shares at a price of $0.2738 per share, totaling approximately $3,724. The transaction was executed for the purpose of covering tax liabilities associated with the settlement of Restricted Stock Units (RSUs). Following this sale, Kreger's direct ownership in the company's common stock decreased to 195,003 shares.
In addition to the sale, Kreger also acquired 31,447 RSUs, each representing a contingent right to receive one share of Velo3D's common stock upon settlement for no consideration. The RSUs are scheduled to vest in 12 equal monthly installments over one year, starting from January 18, 2024, contingent upon Kreger's continued service with the company on each vesting date.
Post-transaction, the total number of shares owned by Kreger, including both non-derivative and derivative securities, stands at 251,572 shares. It is important to note that the sale of shares was specifically related to the financial obligations arising from the vesting of RSUs, as indicated in the footnotes of the SEC filing.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. Velo3D, known for its specialization in industrial machinery, continues to be a subject of interest in the financial markets.
The transactions are part of the routine disclosures required by corporate insiders, providing transparency into the trading activities of key company personnel.
InvestingPro Insights
Velo3D, Inc. (NYSE:VLD) has experienced notable market activity, which is reflected in its current financial metrics and analyst expectations. With a market capitalization of just $73.44 million, the company's valuation is relatively modest in the industrial machinery sector. This may be partly due to its sales growth, which has reportedly declined by 1.6% over the last twelve months as of Q1 2023.
InvestingPro data highlights the challenges Velo3D is facing. The company's gross profit margin stands at a concerning -33.92%, indicating that it has been spending more on the cost of goods sold than it has been able to earn in revenue. This is consistent with the InvestingPro Tip that Velo3D suffers from weak gross profit margins. Moreover, the company's operating income margin is significantly negative at -172.07%, suggesting that operational costs far exceed the revenue being generated. This aligns with another InvestingPro Tip indicating that the company is quickly burning through cash.
InvestingPro Tips also reveal that analysts have recently revised their earnings expectations downwards for the upcoming period, which could be a response to the company's financial performance. Additionally, the stock's price has seen considerable volatility, with a 1-week total return of -14.61% and a 1-month total return of -54.44%, as of the most recent data. This volatility is echoed in the InvestingPro Tip that the stock generally trades with high price volatility.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers a more comprehensive list of tips and data. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 17 additional InvestingPro Tips available for Velo3D, which could further inform investment decisions and provide a clearer picture of the company's financial health and market position.
As the company navigates its financial challenges, these insights could be valuable for shareholders and potential investors to understand the underlying factors that may influence the stock's performance and the company's future prospects. The next earnings date on May 7, 2024, will be a critical time for investors to look for signs of improvement or further challenges.
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