Wag! Group Co. (NYSE:PET), a company specializing in personal services, has reported a recent transaction by its Chief Operating Officer, Dylan Allread. According to the latest SEC filing, Allread has sold a total of 25,497 shares of common stock at prices ranging from $1.55 to $1.56, with a weighted average price of $1.55 per share. The total value of the shares sold amounts to $39,520.
The sale was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This plan was adopted by Allread on September 14, 2023, as noted in the filing's footnotes.
In addition to the sale, the same number of shares, 25,497, were acquired by Allread through the exercise of options at a price of $0.09 per share, totaling $2,294. These options had fully vested as of November 29, 2022, indicating that the executive was entitled to execute the options since that date.
Following the reported transactions, Allread's ownership in Wag! Group Co. stands at 650,566 shares of common stock directly held, and an additional 410,084 shares underlying derivative securities in the form of options.
Investors and followers of Wag! Group Co. often monitor such filings to gain insight into the actions of company executives and their confidence in the company's future. The transactions by Allread have been publicly disclosed in accordance with SEC regulations, ensuring transparency in the trading activities of Wag! Group Co.'s insiders.
In other recent news, Wag! Group reported a 13% year-over-year increase in revenue for the first quarter of 2024, totaling $23.2 million, primarily due to the performance of its wellness business. The company also launched Furscription and WeCompare, new digital tools for veterinary staff and insurance product comparison respectively. DA Davidson, however, adjusted its price target on Wag! Group shares, reducing it to $3.50 from the previous $6.00, citing limited visibility in the competitive marketing environment for pet services.
Despite the reduced target, the firm maintains a Buy recommendation and anticipates significant growth for Wag! Group in the second half of 2024, sparked by recent product launches and the introduction of new services. 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 the company in 2024, a significant improvement from the 0.8% margin in 2023.
These recent developments indicate that Wag! Group is focusing on sustainable growth and profitability, emphasizing customer acquisition and platform expansion. The company is expected to capitalize on its new service offerings and leverage the end of its debt pre-payment penalty to fuel growth initiatives. Analysts from DA Davidson foresee positive free cash flows in the second half of 2024 and maintain a focus on profitability and debt repayment.
InvestingPro Insights
Wag! Group Co. (NYSE:PET) appears to be navigating a challenging period, with recent insider trading activity drawing attention to the company's performance and stock valuation. InvestingPro data shows a market capitalization of $62.96 million USD and a notable gross profit margin of 76.79% for the last twelve months as of Q1 2024. Despite the robust gross profit margins, the company's stock has experienced a downturn, trading near its 52-week low and declining by 19.69% over the last month.
An InvestingPro Tip highlights that analysts do not expect Wag! Group Co. to be profitable this year, which is reflected in the negative P/E ratio of -4.84 for the same period. Additionally, the company has been operating with a moderate level of debt and has not been profitable over the last twelve months. This could be of concern to investors considering the company's future earnings potential and financial stability.
Another InvestingPro Tip points out that although analysts anticipate sales growth in the current year, with a revenue growth of 31.43% for the last twelve months as of Q1 2024, the stock's recent performance has been lackluster, with the price having fallen significantly over the last three months.
For investors looking to delve deeper into the financials and future prospects of Wag! Group Co., there are additional InvestingPro Tips available. By visiting https://www.investing.com/pro/PET, readers can access a comprehensive list of tips to aid in their investment decisions. Moreover, using the coupon code PRONEWS24, users can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering valuable insights that could potentially guide their investment strategies.
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