In a recent transaction, WM Technology, Inc. (NASDAQ:MAPS) director Scott Gordon sold shares of the company's stock, according to a new SEC filing. The transaction involved the sale of 5,047 shares at a price of $1.1101 each, totaling over $5,600.
The sale was executed on June 18, 2024, and was necessary to cover tax withholding obligations related to the vesting of restricted stock units. Additionally, the sale covered any related brokerage commission fees. Notably, the shares were sold in accordance with a prearranged 10b5-1 trading plan, which was adopted by Gordon on June 9, 2023. Such plans allow company insiders to sell shares at predetermined times to avoid accusations of trading on insider information.
Following the transaction, Gordon still owns a substantial amount of WM Technology stock, with 371,215 shares remaining in his possession. This indicates a continued vested interest in the company's performance, despite the recent sale.
Investors often monitor insider sales as they can provide insights into an insider’s view of the company's future prospects. However, sales to cover tax obligations are a routine practice and may not necessarily signal a lack of confidence in the company.
WM Technology, headquartered in Irvine, California, operates within the prepackaged software industry and is known for its technological solutions. The company has undergone changes in the past, including a name change from Silver Spike Acquisition Corp. in 2019.
As always, investors are advised to consider the context of such transactions and look at the broader picture of a company’s financial health and market position when making investment decisions.
In other recent news, WM Technology, Inc., the parent company of Weedmaps, is currently facing a Nasdaq compliance issue due to a delay in filing its required financial reports. The delay has been attributed to a recent change in the company's executive finance leadership. Despite the delay, WM Technology has revealed preliminary financial results for 2023. The company expects its revenue to range between $185 million and $195 million, and its adjusted EBITDA to fall between $33 million and $37 million. Furthermore, the firm reported an approximate 20% increase in cash on hand, with $34 million as of December 31, 2023. These figures are unaudited and may vary once the financial statements are finalized. In response to the Nasdaq compliance issue, WM Technology is working diligently to finalize its financial statements and plans to file the annual report promptly, followed by the quarterly report.
InvestingPro Insights
WM Technology, Inc. (NASDAQ:MAPS) has caught the attention of investors with some notable movements in its stock performance and financial metrics. As of the last twelve months as of Q1 2024, the company boasts a market capitalization of $185.21 million, reflecting its current valuation in the market.
One of the standout features of WM Technology is its impressive gross profit margins, which have reached 93.9%. This figure indicates the company's ability to maintain a significant difference between the cost of goods sold and the revenue it generates, underscoring efficient operations and strong pricing power. Additionally, the company has demonstrated a significant return over the last week, with a 12.0% price total return, and even more so over the last six months, with a 53.42% price total return, signaling robust short-term investor confidence.
However, it's important to note that the company is trading at a high Price / Book multiple of 8.94, which could suggest that the stock is relatively expensive compared to the company's book value. Investors should also be aware that WM Technology has not been profitable over the last twelve months, with a P/E ratio of -17.27, though analysts predict the company will turn profitable this year.
For those interested in a deeper analysis, InvestingPro offers additional insights, including a total of 12 InvestingPro Tips for WM Technology. These tips could provide valuable guidance for investors looking to make informed decisions. Discover more by visiting InvestingPro and get an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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