CalAmp Corp. (NASDAQ:CAMP) director Jason Cohenour has sold a total of 8,640 shares of the company's common stock, according to a recent SEC filing. The transactions, which took place on June 5th, amounted to over $7,175, with the shares sold at a weighted average price of $0.8305.
The sales were executed in multiple transactions with prices ranging from $0.845 to $0.830 per share. Following these transactions, Cohenour's direct holdings in CalAmp Corp. have decreased to zero, as indicated in the filing.
CalAmp Corp., based in Irvine, California, specializes in radio and TV broadcasting and communications equipment. The company has a longstanding history in the manufacturing industry, originally known as California Amplifier Inc.
The SEC filing detailed the disposal of Cohenour's shares but did not disclose the exact reason behind the sale. Shareholders and potential investors often monitor such filings to gauge insider sentiment and potential future stock performance.
For those interested in the specifics of the transactions, Cohenour has committed to providing full information regarding the number of shares sold at each price point within the specified range upon request.
This latest move by a company insider may be of interest to current and prospective shareholders as they assess their investment in CalAmp Corp.
In other recent news, CalAmp Corp. has announced a significant financial restructuring. The restructuring will result in Lynrock Lake Master Fund LP, its primary secured lender, becoming its principal equity owner and privatizing the company. The restructuring involves CalAmp exchanging approximately $229 million of its Convertible Senior Secured Notes for equity interests in the reorganized company. To facilitate this process, CalAmp has voluntarily filed for Chapter 11 under the U.S. Bankruptcy Code in Delaware.
CalAmp's President and CEO, Chris Adams, expressed that this restructuring will allow the company to eliminate debt interest and the costs associated with being a public company, freeing up capital for innovation. The Restructuring Support Agreement (RSA) with Lynrock provides a clear plan for CalAmp to expedite its reorganization following court approval of its prepackaged restructuring plan. Lynrock has shown confidence in CalAmp's long-term strategy and growth prospects, supporting the company through this transition. These are among the recent developments for CalAmp.
InvestingPro Insights
As investors consider the implications of insider transactions at CalAmp Corp. (NASDAQ:CAMP), a look at some key metrics provided by InvestingPro could offer additional context. With a market cap of just 1.34M USD, CalAmp appears to be a smaller player in its industry, potentially making it more susceptible to market volatility. The company's revenue growth has declined by -7.05% over the last twelve months as of Q3 2024, which might be a cause for concern among shareholders interested in the company's ability to grow its top line. Additionally, the price performance has been notably poor, with a 1 Year Price Total Return as of 2024 at a staggering -98.03%, highlighting a significant decrease in the company's stock price over the past year.
InvestingPro Tips reveal that CalAmp operates with a significant debt burden and is quickly burning through cash, which could further explain the recent insider sale. Furthermore, the stock's recent performance has been troubling, with the stock taking a big hit over the last week and analysts revising their earnings downwards for the upcoming period. With the company not anticipated to be profitable this year, investors might exercise caution.
For those seeking a more in-depth analysis, there are additional InvestingPro Tips available, which could provide further insights into CalAmp's financial health and future prospects. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable tips. Currently, there are 21 additional tips listed on InvestingPro for CalAmp, which could serve as a resource for making more informed investment decisions.
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