In a recent transaction, James Daniel Fay, the Chief Financial Officer of Matterport, Inc. (NASDAQ:MTTR), sold 25,000 shares of the company's Class A Common Stock. The sale, as reported in a regulatory filing with the Securities and Exchange Commission (SEC), was executed on July 1, 2024, and amounted to over $108,000.
According to the details provided, the shares were sold at a weighted average price of $4.3251, with individual transactions ranging from $4.30 to $4.40 per share. This sale was conducted under a prearranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Following this transaction, Fay's remaining direct ownership in Matterport stands at 1,425,043 shares. The company, known for its services in prepackaged software, has not commented on the specifics of the sale.
Investors often monitor insider transactions for insights into a company's health and the confidence that executives have in the company's future. Sales like this can be routine and planned in advance, providing executives with a way to diversify their investment portfolios.
In other recent news, Matterport, Inc. has seen a flurry of activity from shareholders and analysts alike. During the company's Annual Meeting, shareholders elected Michael Gustafson as a Class III director and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2024. However, an amendment to the company's Second Amended and Restated Certificate of Incorporation did not pass.
In other developments, Deutsche Bank has increased its price target for Matterport shares to $5.50, up from $3.00. This follows Matterport's acquisition agreement with CoStar Group (NASDAQ:CSGP), which values the company at approximately $1.6 billion. The deal has received unanimous support from Matterport's board of directors.
Northland has also initiated coverage of Matterport with an Outperform rating and a price target of $3.50, indicating confidence in the company's growth potential. Furthermore, Matterport's technology has been adopted by UK-based home extension company Resi, leading to improvements in productivity and cost savings. These are among the recent developments that highlight Matterport's ongoing growth and market recognition.
InvestingPro Insights
The recent insider sale by Matterport, Inc.'s CFO, James Daniel Fay, prompts a closer examination of the company's financial health and market performance. With a market capitalization of $1.37 billion, Matterport's financials and stock activity provide a mixed picture for investors considering the company's prospects.
InvestingPro data indicates that Matterport holds a negative P/E ratio of -7.45, reflecting the market's expectations of future earnings growth despite the company's current lack of profitability. Furthermore, the company's PEG ratio stands at -0.28 for the last twelve months as of Q1 2024, suggesting potential undervaluation relative to its earnings growth rate. While the revenue growth shows a modest increase of 9.63% for the same period, it's clear that the company is still in a phase of investing heavily in its operations, as evidenced by an operating income margin of -121.49%.
On the trading front, Matterport has experienced a significant return over the last three months, with a 114.15% price total return, and a notable uptick of 69.5% over the last six months. These figures align with one of the InvestingPro Tips highlighting the company's strong performance in the short term. Additionally, Matterport's liquid assets exceed short-term obligations, which is a reassuring sign for investors worried about the company's immediate financial stability.
It's also worth noting that Matterport does not pay a dividend, which could be a factor for income-focused investors. For those interested in further insights and tips, there are additional InvestingPro Tips available for Matterport, including the company's cash position and price volatility. Accessing these can provide a more comprehensive understanding of Matterport's potential investment value. For a deeper dive into these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes a total of 9 InvestingPro Tips for Matterport.
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