Michele Klein, a director at Aviat Networks , Inc. (NASDAQ:AVNW), has increased her stake in the company through a recent purchase of common stock. According to a recent SEC filing, Klein acquired 1,400 shares on November 8 at a price of $13.95 per share, amounting to a total transaction value of $19,530.
In addition to this purchase, Klein also received a grant of 8,339 restricted stock units (RSUs). These RSUs are set to vest either at the 2025 Annual Shareholder Meeting or one year from the grant date, whichever comes first. Following these transactions, Klein's total ownership in Aviat Networks has increased to 22,561 shares.
In other recent news, Aviat Networks reported a slight increase in revenue for the first quarter of fiscal year 2025, with earnings reaching $88.4 million, a 1.7% year-over-year rise. This increase was largely attributed to international gains, including significant contributions from the Pasolink acquisition. However, the company also reported a decrease in non-GAAP gross margin to 23% and an adjusted EBITDA loss of $7.7 million, due to challenges in U.S. Tier 1 capital expenditures and project timing issues.
Despite these challenges, Aviat Networks remains optimistic about future growth opportunities, particularly in the private 5G sector and with the upcoming ProVision Plus software transition. The company has adjusted its fiscal year 2025 guidance, expecting revenue to be between $430 million and $470 million and adjusted EBITDA to be between $30 million and $40 million.
These are recent developments that also highlight a $50 million upgrade opportunity from transitioning Pasolink customers to its ProVision Plus software. The company also received its first order for the Aprisa 5G router from a U.S. utility. Aviat Networks anticipates gross margin improvements in the second quarter due to a better project mix and software revenue normalization.
InvestingPro Insights
Michele Klein's recent purchase of Aviat Networks (NASDAQ:AVNW) shares comes at a time when the stock appears to be trading at attractive levels. According to InvestingPro data, AVNW is currently trading near its 52-week low, with a price-to-book ratio of 0.72, suggesting potential undervaluation. This aligns with an InvestingPro Tip indicating that the stock is trading at a low revenue valuation multiple.
The director's decision to increase her stake may be influenced by the company's growth prospects. InvestingPro Tips highlight that net income is expected to grow this year, and analysts predict the company will be profitable this year. This optimism is reflected in the company's PEG ratio of 0.31, which suggests potential undervaluation relative to growth expectations.
However, investors should note that AVNW's stock price has experienced significant volatility, with a 35.97% decline over the past month and a 46.42% drop in the last three months. This volatility is captured in another InvestingPro Tip, which notes that stock price movements are quite volatile.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Aviat Networks, providing a more comprehensive view of the company's financial health and market position.
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