Model N, Inc. (NYSE:MODN) Chief Services Officer Mark Albert Anderson recently sold shares of the company's stock, primarily to satisfy tax obligations related to vested restricted stock units. The transactions, which took place on May 16, 2024, resulted in the sale of 6,194 shares at a price of $29.79 each, totaling approximately $184,519.
According to the filing, the shares were disposed of by Anderson as a means to cover federal and state tax withholdings that arose from the vesting of his restricted stock units (RSUs) and performance-based RSUs. It's important to note that the sales were not made for reasons other than to fulfill required tax obligations.
Following these transactions, Anderson still holds a substantial number of shares in the company, with his ownership standing at 260,949 shares of Model N common stock. The sale price of $29.79 per share remained consistent across all transactions reported on that date.
Investors often monitor insider sales as they can provide insights into an executive's view of the company's stock value and financial health. However, in this case, the sales appear to be solely for the purpose of managing tax liabilities rather than reflecting on the executive's confidence in the company's future prospects.
Model N, Inc. specializes in services related to computer programming, data processing, and other related fields. The company's shares are traded on the New York Stock Exchange under the ticker symbol NYSE:MODN.
InvestingPro Insights
Model N, Inc. (NYSE:MODN) is navigating a complex market landscape, and recent insider transactions have prompted investors to take a closer look at the company's financial health. With a market capitalization of $1.18 billion and a striking price-to-earnings (P/E) ratio of 4260, Model N presents a unique profile in the tech sector. The adjusted P/E ratio, reflecting data from the last twelve months as of Q2 2024, stands even higher at 4483.99, indicating a significant premium being placed on the company's earnings.
Despite the high earnings multiple, the company's revenue growth remains steady, with an 8.56% increase over the last twelve months as of Q2 2024. This is complemented by a gross profit margin of 57.06%, showcasing the company's ability to maintain profitability in its operations. However, the operating income margin is in the negative territory at -1.07%, reflecting challenges in converting revenue to operating income.
InvestingPro Tips for Model N highlight several key factors: the company is expected to be profitable this year, with net income forecasted to grow. Additionally, the stock has experienced a strong return over the last three months, with a price total return of 15.64%. This could be a signal of investor confidence or a reflection of broader market trends. On the other hand, four analysts have revised their earnings downwards for the upcoming period, which may warrant caution from investors.
For those interested in a deeper dive into Model N's financials and future prospects, InvestingPro offers additional insights. There are 13 more InvestingPro Tips available for Model N at https://www.investing.com/pro/MODN, which could provide valuable context to the company's stock performance and potential investment opportunities. To make the most of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.