SAN FRANCISCO—Fong Morgan, General Counsel and Secretary of Maplebear Inc. (NASDAQ:CART), recently sold 11,325 shares of the company's common stock. The shares were sold at an average price of $42.97 each, totaling approximately $486,635. Following this transaction, Morgan retains ownership of 287,659 shares.
The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, which was adopted on November 21, 2023. This type of plan allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own, with the aim of avoiding potential insider trading accusations.
In other recent news, Instacart (NASDAQ:CART) reported a Gross Transaction Value (GTV) of $8.2 billion and an EBITDA of $208 million. The company also repurchased $117 million worth of its shares from D1 Iconoclast Holdings LP. Macquarie maintained its Outperform rating on Instacart and increased the price target to $50.00, citing the company's expanding retail media advertising strategy and partnership with Uber (NYSE:UBER).
Instacart and Foodsmart's joint Foodcare program demonstrated improved health outcomes for individuals with obesity and diabetes. The company also formed a strategic partnership with Family Dollar, enabling customers to use the Supplemental Nutrition Assistance Program (SNAP) Electronic Benefit Transfer (EBT) for online orders.
In analyst coverage, Jefferies initiated a Hold rating on Instacart, while Morgan Stanley cut the company's price target from $45.00 to $41.00. Raymond James initiated coverage with a Market Perform rating, and Cantor Fitzgerald started coverage with an Overweight rating and a price target of $45.00. These are the latest developments in the company's journey.
InvestingPro Insights
While Fong Morgan's recent stock sale might raise eyebrows, it's important to consider Maplebear Inc.'s (NASDAQ:CART) broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $11.31 billion and has shown impressive revenue growth of 10.69% over the last twelve months as of Q2 2024. This growth trend is further supported by a robust 14.94% quarterly revenue increase in Q2 2024.
InvestingPro Tips highlight that Maplebear's management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. Additionally, the company holds more cash than debt on its balance sheet, indicating a strong financial position that may provide flexibility for future growth initiatives.
Despite these positive indicators, it's worth noting that Maplebear was not profitable over the last twelve months, with a negative operating income margin of 69%. However, analysts predict the company will be profitable this year, suggesting a potential turnaround in financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Maplebear Inc., providing deeper insights into the company's financial health and market position.
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