Chenlong Tan, CEO and Chairman of iPower Inc. (NASDAQ:IPW), recently acquired 10,000 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The shares were purchased at a price of $0.685 each, totaling $6,850. Following this transaction, Tan's direct ownership in iPower stands at 8,073,334 shares. This acquisition highlights Tan's ongoing investment in the company, which operates in the retail building materials and garden supply sector.
In other recent news, iPower, a hydroponic equipment and supplies provider, disclosed a decrease in revenue and a net loss in its fiscal Q1 2025 earnings call, despite a slight gross margin increase and operating expenses reduction. Total (EPA:TTEF) revenue for the quarter was reported at $19 million, a drop from the previous year's $26.5 million. The net loss stood at $2 million, up from a loss of $1.3 million in Q1 2024.
On a positive note, the company's gross profit was $8.5 million, with a gross margin increase to 44.7%. Additionally, inventory levels were reduced by 18% through the engagement of a new manufacturing partner in Vietnam. The company also launched the SuperSuite supplier online platform, expanding sales channels on AliExpress, TikTok Shop, and Temu.
Despite a challenging economic landscape, iPower's management remains confident in future growth, particularly through the SuperSuite platform and improved operational efficiency. CFO Kevin Vassily considers a baseline revenue estimate of around $19 million per quarter to be reasonable. These recent developments indicate a focus on strategic initiatives aimed at streamlining the supply chain and expanding market reach.
InvestingPro Insights
Chenlong Tan's recent purchase of iPower Inc. (NASDAQ:IPW) shares aligns with some intriguing financial metrics and insights from InvestingPro. The company's market capitalization currently stands at $21.1 million, reflecting its position in the retail building materials and garden supply sector.
InvestingPro Data reveals that iPower's revenue for the last twelve months as of Q1 2025 was $78.57 million, with a gross profit margin of 45.8%. This robust margin suggests the company maintains strong pricing power in its product lines, which could be attractive to investors like Tan.
An InvestingPro Tip indicates that iPower's stock is trading at a low price-to-book ratio of 1.0, potentially signaling an undervalued opportunity. This metric aligns with Tan's decision to increase his stake in the company, possibly viewing the current share price as an attractive entry point.
Another relevant InvestingPro Tip notes that analysts have revised their earnings expectations for iPower upwards. This positive sentiment from analysts could be a factor in Tan's confidence to expand his ownership.
For investors seeking a deeper understanding of iPower's financial health and market position, InvestingPro offers 9 additional tips that could provide valuable insights into the company's prospects.
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