Cardlytics, Inc. (NASDAQ:CDLX) CEO Amit Gupta recently sold a portion of his holdings in the company, according to a filing with the Securities and Exchange Commission. On October 24, Gupta sold 22,607 shares of Cardlytics common stock at a weighted average price of $3.845 per share, totaling approximately $86,923. This sale was conducted to satisfy tax withholding obligations resulting from the vesting of restricted stock units (RSUs).
On October 23, Gupta acquired 43,750 shares of Cardlytics common stock through the vesting of RSUs. Each RSU represents a contingent right to receive one share of common stock. Following these transactions, Gupta's direct ownership stands at 178,519 shares.
In other recent news, Cardlytics has reported its Q2 2024 financial results and announced significant leadership changes. The company's billings saw a slight increase of 2% to $110.4 million, while revenue fell by 7% to $69.6 million. Amit Gupta was appointed as the new CEO, effective from August 16, 2024. The company also launched the Insight dashboard, intended to enhance advertiser retention and budget growth.
Evercore ISI has initiated coverage on Cardlytics with an In-Line rating, indicating a belief that the company's stock will perform on par with the average returns of the stocks the firm covers. The rating was based on an estimated 1.3 times the 2026 expected enterprise value to sales, projected to be approximately $323 million.
In other recent developments, Cardlytics' UK segment witnessed a robust 33% growth in billings, however, despite a rise in monthly active users to 165.5 million, the average revenue per user decreased by 13%. Cardlytics anticipates Q3 billings to range between $100 million and $106 million, with revenue forecasts of $56 million to $63 million.
InvestingPro Insights
As Cardlytics' CEO Amit Gupta adjusts his holdings, investors might benefit from a closer look at the company's financial health and market performance. According to InvestingPro data, Cardlytics has a market capitalization of $187.9 million, reflecting its current position in the market.
InvestingPro Tips highlight that Cardlytics operates with a significant debt burden and may have trouble making interest payments on its debt. This financial strain is particularly relevant in light of the recent insider transaction, as it could impact the company's future strategic decisions and stock performance.
The company's stock has experienced considerable volatility, with InvestingPro data showing a 54.84% price decline over the past three months and a 68.24% drop over the last year. However, there's been a recent uptick, with a 13.86% return over the past month, suggesting some potential for short-term recovery.
Analysts anticipate a sales decline for Cardlytics in the current year, which aligns with the reported 9.21% decrease in quarterly revenue. This projection, combined with the expectation that the company will not be profitable this year, underscores the challenges Cardlytics faces in the near term.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Cardlytics, providing a deeper understanding of the company's financial position and market outlook.
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