In a recent transaction reported to the Securities and Exchange Commission, Kurt Workman, the Chief Executive Officer of Owlet, Inc. (NYSE:OWLT), sold 893 shares of the company's common stock. The transaction comes as the stock has declined nearly 8% over the past week, according to InvestingPro data. The shares were sold at an average price of $4.86 each, totaling approximately $4,339. This transaction was conducted to cover taxes and fees related to the vesting and settlement of restricted stock units, according to the filing. Following this sale, Workman holds 338,769 shares directly in the $73 million market cap company. InvestingPro analysis indicates the stock is currently undervalued, with the company showing strong revenue growth of 75% in the last twelve months despite operating with a moderate debt level. For deeper insights into insider trading patterns and additional ProTips, subscribers can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Owlet Inc. reported record Q3 revenue, primarily driven by global sales of its product, the Dream Sock. The company's net revenue soared by 141% year-over-year to $22.1 million, with gross margins reaching a record high of 52.2%. Owlet also saw its Adjusted EBITDA turn positive, reaching $0.6 million, a significant rise from the previous year.
These recent developments are the result of strategic initiatives, such as expanding distribution through Amazon (NASDAQ:AMZN) and enhancing its medical sector presence with the BabySat monitor. Owlet also launched a beta subscription service, which has seen an 85% retention rate. The company ended the quarter with $21.5 million in cash and raised its 2024 revenue guidance to between $74 million and $77.5 million.
However, operating expenses did increase to $16.4 million, partly due to a $1.9 million non-cash impairment charge and rising marketing costs. The operating loss was reported at $4.8 million, although this was an improvement from the previous year's $7.9 million. Despite these challenges, Owlet executives remain confident in the company's market position and path toward profitability.
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