Timothy Nguyen, a ten percent owner of MeridianLink, Inc. (NYSE:MLNK), has reported selling a total of 32,776 shares in two separate transactions, according to a recent SEC filing. The sales occurred on November 25 and 26, with share prices ranging from $23.00 to $23.1955. The transactions resulted in a total value of approximately $756,498.
Following these transactions, Nguyen now holds 10,729,935 shares indirectly through SCML, LLC, and an additional 814,526 shares through KCD30, LLC, as noted in the footnotes of the filing.
In other recent news, MeridianLink, a provider of software platforms for financial institutions, recently reported a 5% year-over-year revenue growth in Q3 2024, reaching $80.4 million. This was accompanied by an adjusted EBITDA of $33.8 million, surpassing expectations. The company also returned $31.3 million to shareholders through stock buybacks and reported $18.7 million in free cash flow.
MeridianLink also announced a partnership with ScoreNavigator, Inc. to integrate advanced credit report analysis tools to enhance credit analysis and decision-making in mortgage lending. This collaboration aims to offer lenders a more comprehensive understanding of consumer creditworthiness, potentially increasing application approval rates and offering more competitive lending terms.
Furthermore, UBS has upgraded MeridianLink to Neutral with a raised target of $25.50. This upgrade is attributed to the company's steady revenue and earnings performance, and an anticipated positive shift in the lending environment for 2025.
Lastly, for future expectations, MeridianLink projects Q4 2023 revenue to be between $76 million and $80 million and full-year 2024 revenue to increase by 3% to 4%, reaching between $313 million and $317 million. These are recent developments that investors should be aware of.
InvestingPro Insights
While Timothy Nguyen's recent sale of MeridianLink shares may raise eyebrows, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, MeridianLink's market capitalization stands at $1.75 billion, with a price-to-book ratio of 4.15 as of the last twelve months ending Q3 2024. This suggests that the market values the company significantly higher than its book value, potentially indicating investor confidence in its future prospects.
An InvestingPro Tip reveals that management has been aggressively buying back shares, which could be seen as a positive signal about the company's financial health and management's belief in its value. This share repurchase activity contrasts with Nguyen's recent sale and may provide some reassurance to other shareholders.
Another InvestingPro Tip notes that MeridianLink's liquid assets exceed its short-term obligations, indicating a strong liquidity position. This financial stability could be particularly important given that the company is not currently profitable over the last twelve months, as highlighted by another tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for MeridianLink, providing a deeper understanding of the company's financial position and market performance.
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