Wag! Group Co. (NYSE:PET), a company specializing in personal services, disclosed in a recent filing that its Chief Executive Officer, Garrett Smallwood, has sold shares totaling over $12,000. The transactions occurred on two consecutive days, with shares being sold at prices ranging between $1.50 and $1.60.
The first set of transactions took place on June 5, 2024, where Smallwood sold 3,543 shares at an average price of $1.55 per share. Following this sale, Smallwood's holdings in the company decreased to 1,144,443 shares. The next day, on June 6, he continued by selling 4,767 shares at an average price of $1.53 per share, which left him with 1,139,676 shares.
The sales were made at weighted average prices, with the stock being sold in multiple transactions at prices ranging from $1.51 to $1.60 on the first day and $1.50 to $1.58 on the second day. Smallwood has stated his willingness to provide full details of the sales upon request, including the number of shares sold at each separate price within the specified ranges.
Investors tracking insider transactions may take note of these sales as part of their assessment of the company's performance and management's perspective on its valuation. Wag! Group Co. has not provided any specific reasons for these transactions, which are part of the normal course of business for corporate executives managing their personal investment portfolios.
In other recent news, Wag! Group reported a 13% year-over-year increase in revenue for the first quarter of 2024, reaching $23.2 million, mainly driven by the performance of its wellness business. The company also launched Furscription, a digital tool for veterinary staff, and WeCompare, a consumer brand for insurance product comparison. These new services are expected to contribute to significant growth acceleration in the second half of 2024, as predicted by DA Davidson.
Moreover, DA Davidson revised its price target on Wag! Group shares to $3.50 from the previous $6.00, citing limited visibility in the competitive marketing environment for pet services. Despite the downward adjustment, the firm maintains a Buy recommendation, based on the company's potential to leverage new service offerings and the end of its debt pre-payment penalty.
Furthermore, DA Davidson projects Wag! Group's 2024 revenue to reach $109.3 million, marking a 30.3% year-over-year increase. The firm also estimates an adjusted EBITDA of $5.0 million for Wag! Group in 2024, a significant improvement from the 0.8% margin in the calendar year 2023. These recent developments underscore Wag! Group's focus on sustainable growth and profitability, emphasizing customer acquisition and platform expansion.
InvestingPro Insights
Following the recent insider transactions at Wag! Group Co. (NYSE:PET), market participants may gain additional context by considering key performance indicators and analyst insights. According to InvestingPro data, Wag! Group Co. has a market capitalization of $63.77 million, which reflects the company's size and market value as of the last twelve months leading up to Q1 2024. Despite the CEO's share sales, analysts are forecasting a robust sales growth for the company in the current year, which could indicate underlying business strength and potential for future expansion.
Another notable metric is the company's impressive gross profit margin of 76.79%, which suggests that Wag! Group Co. is effective at controlling the cost of goods sold and can retain a significant portion of revenue as gross profit. However, it is important for investors to consider that analysts do not expect the company to be profitable this year, as reflected by a negative P/E ratio of -4.55. The company's stock performance also seems to align with this cautious outlook, having declined over the last month and trading near its 52-week low. This could present a buying opportunity for investors who believe in the company's long-term prospects, especially considering the substantial gross profit margins.
For those interested in a deeper dive into Wag! Group Co.'s financials and stock performance, InvestingPro offers additional tips and analyses. Currently, there are 6 more InvestingPro Tips available, which can provide further insights into the company's debt levels, profitability over the last twelve months, and dividend policy. Access to these tips can be especially valuable for investors looking to make informed decisions based on comprehensive data. To explore these additional insights, consider subscribing to InvestingPro using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.