SK Inc., a major shareholder in SES AI Corp (NYSE:SES), has recently sold a significant portion of its holdings in the company. The transactions, which took place on September 30 and October 1, 2024, resulted in a total sale of $603,811 worth of Class A common stock.
The sales were executed in multiple transactions with prices ranging from $0.61 to $0.70 per share. On September 30, shares were sold at prices between $0.7014 and $0.7056, while the following day's sales ranged from $0.6076 to $0.6083. The weighted average prices reported were $0.70 and $0.61 for each respective day.
The first transaction on September 30 involved the sale of 71,176 shares, and the second on October 1 saw a larger quantity of 908,178 shares being sold. Following these transactions, SK Inc. still holds a substantial amount of SES AI Corp stock, amounting to 41,028,405 shares, which includes 3,829,028 Earn-Out Shares.
The trades were disclosed in a regulatory filing with the Securities and Exchange Commission, signed by Byung Don Kwon, Vice President and Head of Financial Strategy for SK Inc., acting as Attorney-in-Fact. This sale by SK Inc., a ten percent owner of SES AI Corp, demonstrates a significant change in their investment in the company, which investors may find noteworthy.
SES AI Corp, listed on the New York Stock Exchange, operates within the miscellaneous electrical machinery, equipment, and supplies industry. The company has undergone a name change from Ivanhoe Capital Acquisition Corp. as of July 23, 2020.
Investors and analysts often scrutinize insider transactions as they can provide insights into the company's performance and insider perspectives on the stock's value. The recent sale by SK Inc. may attract attention from the market and could be a point of discussion among SES AI Corp's investors.
"In other recent news, SES AI Corporation announced its Q2 financial results, with operating expenses of $24.6 million, cash used in operations of $22.1 million, and capital expenditures of $3.7 million. The company ended the quarter with a strong liquidity position of $294.7 million and updated its cash usage guidance for 2024. In addition to its financial performance, SES AI has been making significant strides in its strategic joint development agreements with Honda (NYSE:HMC) and Hyundai (OTC:HYMTF). Deutsche Bank (ETR:DBKGn) has resumed coverage on SES AI with a Hold rating and set a price target of $1.50, noting the company's progress with its automotive partners. These developments are part of SES AI's ongoing commitment to advancing its battery technology, specifically through the integration of artificial intelligence into the development of next-generation battery technologies for the electric vehicle and urban air mobility sectors. The company has plans to complete a lithium metal line in South Korea and convert EV lines for UAM production. Furthermore, SES AI aims to monetize AI solutions through licensing and royalties, positioning itself at the forefront of the AI transformation in the battery industry. These recent developments signify SES AI's dedication to innovation and financial stability."
InvestingPro Insights
The recent sale of SES AI Corp (NYSE:SES) shares by major shareholder SK Inc. aligns with several concerning trends highlighted by InvestingPro data. The company's stock has experienced significant declines across multiple timeframes, with a 1-week price total return of -17.16% and a staggering 1-year price total return of -74.3%. This downward trajectory is further emphasized by the stock trading at just 22.41% of its 52-week high.
InvestingPro Tips indicate that SES is "quickly burning through cash" and "not profitable over the last twelve months," which may explain SK Inc.'s decision to reduce its position. The company's financial health appears precarious, with an adjusted operating income of -$83.17 million for the last twelve months as of Q2 2024.
Despite these challenges, SES holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial cushion might provide some stability as the company navigates its current difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 19 additional tips for SES, providing a deeper understanding of the company's financial position and market performance.
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