BELLINGHAM, WA—Glenn Darrel Sanford, CEO and Chairman of the Board at eXp World Holdings, Inc. (NASDAQ:EXPI), recently sold 50,000 shares of the company's common stock. The transaction, reported in a recent SEC filing, took place on November 12, 2024, with shares sold at a weighted average price of $14.4764, amounting to a total of $723,820.
The stock sales were executed at prices ranging from $14.21 to $14.81 per share. Following this transaction, Sanford holds 40,489,080 shares directly. The sale was conducted under a 10b5-1 trading plan, allowing company insiders to set up a predetermined plan for selling stocks, which can help avoid potential accusations of insider trading.
In other recent news, eXp World Holdings announced a modest revenue growth of 2% year-over-year in Q3 2024, reaching $1.231 billion. The company's adjusted EBITDA also saw a rise of 15%, reaching $23.9 million. Despite facing a challenging U.S. real estate market, the firm reported an impressive 63% revenue growth in its international sector. eXp World Holdings plans to further expand its global footprint with upcoming ventures in Turkey, Peru, and Egypt in early 2025. However, the company reported a GAAP net loss of $8.5 million, primarily due to an $18 million contingency provision for an ongoing antitrust lawsuit. The company also revealed plans to invest in international markets and agent growth initiatives, despite a decrease in agent count by 4%. These developments reflect eXp World Holdings' commitment to growth and innovation in the face of market and legal challenges.
InvestingPro Insights
As Glenn Darrel Sanford reduces his stake in eXp World Holdings, Inc. (NASDAQ:EXPI), investors might be interested in additional context provided by InvestingPro data. Despite the recent insider sale, EXPI's stock has shown resilience, with a 22.38% price total return over the past year and a strong 15.52% return in the last three months.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could potentially offset the impact of insider sales on stock price. Additionally, EXPI holds more cash than debt on its balance sheet, indicating a solid financial position. This financial strength is further supported by the fact that the company's liquid assets exceed short-term obligations.
However, investors should note that EXPI suffers from weak gross profit margins, with InvestingPro data showing a gross profit margin of 7.58% for the last twelve months as of Q3 2024. This low margin is reflected in the company's operating income margin of just 0.09% for the same period.
On a positive note, analysts predict that the company will be profitable this year, which aligns with the InvestingPro Tip suggesting that net income is expected to grow. This potential turnaround in profitability could be a key factor for investors to watch, especially considering the company's current P/E ratio of 765.99 (adjusted for the last twelve months as of Q3 2024).
For those interested in a deeper dive into EXPI's financial health and market position, InvestingPro offers 16 additional tips, providing a comprehensive analysis to inform investment decisions.
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