Joseph Vernachio, the CEO of Allbirds , Inc. (NASDAQ:BIRD), recently sold 2,532 shares of the company's Class A common stock. The company, currently valued at approximately $65 million, has seen its stock decline over 66% year-to-date. According to InvestingPro analysis, the stock appears undervalued despite facing significant challenges, including rapid cash burn and high price volatility. The transaction, valued at approximately $20,739, was executed at an average price of $8.19 per share. These sales were conducted to cover tax withholding obligations related to the vesting and settlement of restricted stock units, as noted in the filing. Following this transaction, Vernachio retains ownership of 41,010 shares in the company. InvestingPro subscribers have access to 14 additional key insights about Allbirds, including detailed analysis of its financial health and growth prospects.
In other recent news, Allbirds reported its Q3 2024 financial results, revealing a net revenue of $43 million. This figure represents a decrease, attributed to lower unit sales and transitions to a distributor model in certain regions. Despite these challenges, the company saw an increase in gross margins to 44.4%, largely due to reduced freight costs and a more efficient inventory position.
Allbirds also launched two new products, the Tree Glider and Lounger Lift, which have been positively received by consumers. The company revised its full-year revenue guidance to between $187 million and $193 million and anticipates an adjusted EBITDA loss of $75 million to $71 million.
Recent developments include the establishment of two new international distributor agreements, expanding Allbirds' reach in Latin America and Europe from mid-2025. The company plans to focus on strategic promotions and marketing adjustments to prepare for new product launches in the second half of 2025.
Bearish highlights from analysts include lower unit sales and the transition to a distributor model impacting net revenue. However, bullish highlights note a gross margin improvement to 44.4% and strong cash reserves of $79 million, positioning the company well for future growth. Allbirds remains optimistic about its upcoming product launches and strategic marketing efforts.
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