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Box Inc CFO Dylan Smith sells $422,812 in company stock

Published 15/10/2024, 22:48
BOX
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Box Inc (NYSE:BOX) Chief Financial Officer Dylan Smith recently sold 13,000 shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $32.524, with the transaction totaling approximately $422,812.

The sale was executed on October 10, 2024, under a Rule 10b5-1 trading plan that Smith adopted earlier this year on April 2. Following this transaction, Smith holds 1,474,509 shares in the company. Some of these shares are represented by restricted stock units, which are subject to vesting schedules and continuous service requirements.

This sale was also subject to a Lock-Up Agreement dated September 17, 2024. The reported sales reflect a range of prices from $32.02 to $32.72 per share.

In other recent news, Box, Inc. delivered robust Q2 results for fiscal year 2025, reporting a 3% increase in revenue year-over-year, amounting to $270 million, and record gross and operating margins. The company also announced its intention to offer $400 million in convertible senior notes due in 2029, intending to use the proceeds for various purposes, including financing capped call transactions, repurchasing some of its outstanding 0% Convertible Senior Notes due in 2026, and potential acquisitions.

Box, Inc. recently integrated AI capabilities into its new product, Box Hubs, enhancing the way enterprises organize, share, and discover content. The company also acquired AI-powered Intelligent Document Processing technology from Alphamoon, aiming to enhance its Intelligent Content Management offerings.

These are among the recent developments for Box, Inc., demonstrating the company's continuous efforts to innovate and expand its offerings. The company's outlook remains positive, with raised guidance for the full year and anticipated net retention rate improvements.

InvestingPro Insights

As Box Inc's CFO Dylan Smith sells a portion of his shares, it's worth noting some key financial metrics and insights from InvestingPro that provide context to this transaction and the company's overall performance.

Box's market capitalization stands at $4.69 billion, reflecting its significant presence in the cloud content management and file sharing market. The company's revenue for the last twelve months as of Q2 2025 reached $1.06 billion, with a modest growth rate of 3.86%. This steady revenue growth aligns with the company's mature position in the industry.

One of the standout metrics is Box's impressive gross profit margin of 76.8%, which underscores the company's efficiency in delivering its services. This high margin is highlighted as an InvestingPro Tip, indicating the company's strong pricing power and cost management.

Another InvestingPro Tip points out that Box has been aggressively buying back shares, which could be seen as a sign of management's confidence in the company's value. This strategy, combined with the high shareholder yield, suggests that Box is committed to returning value to its investors.

The stock's performance has been robust, with a 23.88% price total return over the past three months and a 31.04% return over the past year. Currently trading at 96.41% of its 52-week high, Box appears to be in a strong market position.

While the P/E ratio of 40.85 might seem high at first glance, the PEG ratio of 0.13 suggests that the stock could be undervalued relative to its earnings growth potential. This is further supported by an InvestingPro Tip indicating that Box is trading at a low P/E ratio relative to near-term earnings growth.

For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Box, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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