Don Schena, the Chief Customer Experience Officer of WideOpenWest, Inc. (NYSE:WOW), has sold a total of $52,922 worth of company stock, according to a recent SEC filing. The transaction occurred on August 1, 2024, with the executive offloading 10,000 shares at a weighted average price of $5.2922.
The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, which Schena had adopted on November 11, 2023. This type of plan allows company insiders to sell shares over a predetermined period of time, reducing the potential for any accusations of trading on inside information.
Investors tracking insider transactions may note that the shares were sold at varying prices, ranging from $5.235 to $5.46. The disclosed weighted average price suggests that multiple transactions were made to reach the total sale amount. Following the sale, Schena's reported ownership in WideOpenWest stock stands at 276,413 shares.
WideOpenWest, based in Englewood, Colorado, operates within the cable and other pay television services industry. The company has not provided any specific reason for Schena's stock sale, and such transactions are not uncommon among executives who may sell shares for personal financial management reasons.
Investors and analysts often watch insider selling for signals about a company's future prospects, but it is also important to remember that there can be many personal factors influencing an executive's decision to sell shares.
"In other recent news, WideOpenWest (WOW) announced a year-over-year increase in high-speed data revenue to $106.2 million and a 3.4% growth in adjusted EBITDA to $67.4 million, as per its first-quarter 2024 earnings report. The company also secured a $2.39 million grant from the Alabama Department of Economic and Community Affairs for expanding its fiber network in Houston and Henry Counties, southeastern Alabama. These are among the recent developments for WideOpenWest, demonstrating the company's ongoing efforts in financial growth and network expansion.
On the other hand, Raymond James has downgraded WideOpenWest's stock rating from Market Perform to Underperform, following a non-binding preliminary acquisition proposal by Crestview, WOW's majority shareholder, and DigitalBridge. The proposal suggests a purchase price of $4.80 per share, closely aligned with Raymond James' prior price target. Raymond James expressed skepticism regarding the likelihood of a higher bid emerging to top the current offer, citing potential unseen expenses for the prospective buyer, including necessary upgrades to the company's legacy properties.
These recent developments highlight WideOpenWest's strategic maneuvers and the impact of potential acquisitions on stock ratings. While the company continues to make strides in its business operations and financial performance, the market's response to these developments remains to be seen."
InvestingPro Insights
As WideOpenWest, Inc. (NYSE:WOW) navigates through its corporate and financial challenges, recent data from InvestingPro provides a deeper look into the company's current standing. With a market capitalization of $432.04 million, WideOpenWest appears to be a mid-sized player in the cable and pay television services industry. However, the company's financial health shows signs of strain, as reflected in the InvestingPro Tips that highlight a significant debt burden and a quick rate of cash burn.
One notable aspect is WideOpenWest's stock price volatility, which could be of concern to potential investors. This is further compounded by the fact that the company has not been profitable over the last twelve months, as indicated by a negative P/E ratio of -1.59 and an adjusted P/E ratio for the last twelve months as of Q1 2024 of -15.15.
Despite these challenges, the company has seen a strong return over the last three months, with a price total return of 36.94%. Additionally, analysts are predicting the company will turn a profit this year, which could be a positive sign for investors considering the stock's recent performance. It's worth noting that WideOpenWest does not pay a dividend, which may influence the investment strategies of income-focused shareholders.
For those interested in further analysis and additional InvestingPro Tips, there are 11 more tips available on the InvestingPro platform for WideOpenWest, which can offer a more comprehensive understanding of the company's financial health and stock performance.
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