Kenneth L. Cornick, the President and CFO of Clear Secure , Inc. (NYSE:YOU), recently sold 150,000 shares of Class A Common Stock, amounting to approximately $5.1 million. The shares were sold at a weighted average price of $34.08, with individual transactions ranging from $34.00 to $34.19. This sale was conducted under a Rule 10b5-1 trading plan, which was adopted earlier this year.
Following this transaction, Cornick no longer holds any shares of Class A Common Stock. The sale was part of a series of transactions involving different classes of stock, including Class D and Class B Common Stock, as well as non-voting common units of Alclear Holdings, LLC. These transactions were executed under the terms of an Exchange Agreement that allows for the exchange of different classes of stock on a one-for-one basis.
Cornick's activities were reported in a recent SEC Form 4 filing, detailing his direct and indirect ownership through Alclear Investments II, LLC, which he controls.
In other recent news, Clear Secure reported a strong fiscal second quarter for 2024, with a 25% increase in revenues, a 137% rise in adjusted EBITDA, and significant growth in cash flow. The company also raised its free cash flow growth guidance for the fiscal year to at least 40%. Furthermore, Clear Secure added a record 2.3 million members during the quarter, contributing to robust growth in its CLEAR Travel and CLEAR Verified offerings.
In addition to its financial performance, the company announced the opening of four new TSA PreCheck enrollment locations, bringing the total number of CLEAR's TSA PreCheck enrollment centers to 51 across the United States. This expansion is part of Clear Secure's 2024 plan to enhance customer convenience.
However, Clear Secure also reported the departure of Kasra Moshkani, the Executive Vice President, Verified, who will be leaving on September 18, 2024, to pursue other opportunities. The company has already begun the process of finding a suitable replacement. These are recent developments that highlight Clear Secure's continued focus on innovation and customer experience.
InvestingPro Insights
Clear Secure, Inc. (NYSE:YOU) has been experiencing significant growth and market attention, as reflected in its recent stock performance and financial metrics. According to InvestingPro data, the company's revenue growth stands at an impressive 32.44% over the last twelve months as of Q2 2024, with a quarterly growth of 24.6% in the same period. This robust growth aligns with the company's market capitalization of $4.94 billion.
InvestingPro Tips highlight that Clear Secure holds more cash than debt on its balance sheet, indicating a strong financial position. This could provide context for Kenneth L. Cornick's recent stock sale, suggesting that the transaction may be part of a planned diversification strategy rather than a reflection on the company's prospects.
The company's stock has shown remarkable performance, with a 126.06% total return over the past year and a 92.38% return over the last six months. This aligns with another InvestingPro Tip noting the significant return over the last week, which stands at 11.08%.
It's worth noting that Clear Secure is trading at a P/E ratio of 45, which some investors might consider high. However, the PEG ratio of 0.19 suggests that the stock might be undervalued relative to its growth prospects. This could explain why 7 analysts have revised their earnings upwards for the upcoming period, as indicated by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Clear Secure, providing a deeper understanding of the company's financial health and market position.
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