James M. Kempton, Vice President, CFO, and Treasurer of Smith Micro Software Inc. (NASDAQ:SMSI), recently sold a portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Kempton sold 437 shares of common stock on December 16, 2024, at an average price of $0.7886 per share, resulting in a total transaction value of approximately $344. The transaction comes as SMSI trades at a Price/Book ratio of 0.45, with the stock down nearly 85% year-to-date. InvestingPro analysis indicates the stock is currently trading below its Fair Value.
Additionally, on December 17, 2024, Kempton had 183 shares withheld at an average price of $0.76 per share to cover income tax obligations, totaling $139. Following these transactions, Kempton retains direct ownership of 70,146 shares in Smith Micro Software (ETR:SOWGn), representing a significant stake in this $17 million market cap company. For deeper insights into SMSI's financial health and detailed analysis, including 13 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Smith Micro Software finds itself facing potential delisting from the Nasdaq due to its stock price falling below the minimum bid price for 30 consecutive business days. Despite this, the company has been granted a 180-day period to regain compliance. Smith Micro has expressed its intention to closely monitor the bid price of its common stock and evaluate options to regain compliance.
In terms of earnings and revenue, Smith Micro reported a significant decrease for Q3 2024, with revenue falling to $4.6 million and a GAAP net loss of $6.4 million. This was primarily due to the termination of the Verizon (NYSE:VZ) Family Safety contract and decreasing Sprint Safe and Found revenues.
Despite these challenges, the company has managed to reduce costs, resulting in $1.9 million in savings for Q3, and anticipates Q4 revenues to be between $5 million and $5.2 million. It also aims for profitability by 2025, with a break-even point in the mid-$7 million range. These recent developments are expected to be closely monitored by investors and analysts.
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