BEIJING - Datasea Inc. (NASDAQ:DTSS), a Nevada-incorporated digital technology company with operations in the U.S. and China, disclosed Monday that its CEO, Ms. Zhixin Liu, plans to acquire up to $3 million of the company's common stock. The purchases will be made with personal funds over the next 12 months, subject to market conditions and regulatory compliance.
Ms. Liu, who currently holds a 25.08% stake in Datasea, making her the largest shareholder, expressed her belief that the stock is undervalued. She cited the company's progress in its core businesses and her confidence in its strategic plan as reasons for the planned stock purchase. The CEO's acquisition of additional shares is intended to reflect her optimistic view of the company's current value and growth potential.
The transactions will be conducted on the open market at prevailing prices or through other legally permissible means, such as privately negotiated transactions or block trades. While the exact timing and amounts are not specified, they will be influenced by market conditions, legal limitations, and applicable rules and regulations, including those outlined in Rule 10b-5-1 and Rule 10b-18 of the Securities Exchange Act of 1934.
Datasea specializes in acoustic high-tech and 5G Artificial Intelligence multimodal communication technology. The company focuses on innovative applications such as ultrasonic sterilization to combat viruses and is developing advancements in directional sound and medical ultrasonic cosmetology. In July 2023, Datasea reinforced its global strategy by establishing Datasea Acoustics LLC in Delaware.
The information in this article is based on a press release statement from Datasea Inc.
InvestingPro Insights
Datasea Inc. (NASDAQ:DTSS), with its ambitious growth strategy and recent actions by its CEO, Ms. Zhixin Liu, to acquire additional shares, has caught the attention of investors. The company's CEO believes in the undervalued nature of the stock, which is supported by some interesting metrics and InvestingPro Tips. As per the latest data, Datasea Inc. has a market capitalization of $23.4 million. Despite the company's rapid revenue growth in the last twelve months, with a staggering increase of 232.5%, it's important to note that the gross profit margin remains low at 1.92%. This could indicate underlying challenges in cost management or pricing power.
InvestingPro Tips reveal that Datasea Inc. is trading at a high Price / Book multiple of 8.75, suggesting that investors may be paying a premium for the company's net assets. Additionally, the company has not been profitable over the past twelve months, which is a critical factor for investors to consider. On the bright side, the stock has seen a strong return over the last three months with a price total return of 193.19%, indicating a recent uptrend in investor sentiment.
For those looking to dive deeper into Datasea's financial health and stock performance, there are additional InvestingPro Tips available. For instance, the company operates with a moderate level of debt and does not pay a dividend, which could influence investment decisions depending on individual strategies. Interested readers can find more insights and tips on Datasea Inc. by visiting https://www.investing.com/pro/DTSS, and can take advantage of an exclusive offer using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. As of now, there are 13 additional InvestingPro Tips listed that could further aid in evaluating the company's prospects.
As Datasea Inc. continues to navigate the competitive tech landscape and its CEO increases her stake in the company, these InvestingPro metrics and tips provide a valuable perspective for current and potential investors. The next earnings date is set for May 15, 2024, which will likely offer further insights into the company's financial trajectory and operational performance.
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