BOSTON—Michael J. McConnell, a director at OneSpan Inc. (NASDAQ:OSPN), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, McConnell sold 53,000 shares of common stock on December 2, 2024. The shares were sold at a weighted average price of $18.51, with transactions occurring in a price range from $18.20 to $18.70. The total value of the sale amounted to $981,030. The sale comes as OneSpan trades near its 52-week high of $18.75, having delivered an impressive 72.6% return year-to-date.
Following this transaction, McConnell retains 20,849 shares in OneSpan. As a director, McConnell's stock movements are closely watched by investors who often view such transactions as potential indicators of the company's future performance. According to InvestingPro, OneSpan maintains strong financial health with a "GREAT" overall score, and management has been actively buying back shares. For deeper insights into OneSpan's valuation and 13 additional ProTips, investors can access the comprehensive Pro Research Report on InvestingPro.
In other recent news, OneSpan has demonstrated a strong financial performance in Q3 with significant growth in its Annual Recurring Revenue (ARR) and subscription revenues. The company's ARR increased by 9% to $164 million, and their subscription revenue grew by 29%, making up 60% of total revenue. Despite a decrease in total revenue, mainly due to expected declines in hardware sales, OneSpan reported a GAAP net income per share of $0.21, marking a significant turnaround from the previous year's loss.
OneSpan's Digital Agreements segment achieved profitability for the first time, while the Security segment maintained high profitability with an increased gross profit margin. The company's adjusted EBITDA reached $17 million, representing 30% of revenue. Notably, the full-year 2024 revenue guidance was revised to $238 million to $242 million, with an increased adjusted EBITDA forecast of $65 million to $67 million.
These recent developments indicate OneSpan's strategic shift towards higher-margin software revenue and a focus on operational efficiency and profitability. According to Jorge Martell, an increase in adjusted EBITDA for 2024 is projected, with gross margins expected to improve. The company's focus on growing its partner ecosystem and the anticipated growth in security subscription revenue positions OneSpan for efficient and profitable revenue growth in the future.
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