Charlie Bass, a director and significant shareholder of Socket Mobile, Inc. (NASDAQ:SCKT), purchased 10,000 shares of the company's common stock over two days, according to a recent SEC filing. The transactions, executed on November 6 and November 7, 2024, were made at prices ranging from $1.1728 to $1.1756 per share, amounting to a total investment of $11,742. Following these purchases, Bass now holds 1,516,651 shares directly.
In other recent news, Socket Mobile has reported mixed results for its third quarter of 2024. The company's revenue saw an increase of 21% to $3.9 million compared to the same period in the previous year. However, the quarter was marked by an operating loss of $1 million and an EBITDA-negative of approximately $500,000. The company's bookings saw an uneven distribution throughout the quarter, resulting in a significant backlog entering Q4.
In spite of these challenges, Socket Mobile has received positive feedback for its industrial products, which are currently under evaluation by large organizations. The company has also released an updated version of CaptureSDK with full support for iOS 18 and has raised $1 million from insiders to ensure working capital for larger customer projects.
Looking forward, Socket Mobile anticipates profitability in 2025 due to investments in the industrial and camera spaces. The company is also transitioning into a more comprehensive hardware and software data capture company, with new products and strategic initiatives expected to diversify and stabilize the company's revenue sources. These are among the recent developments that have shaped Socket Mobile's trajectory.
InvestingPro Insights
The recent insider buying by Charlie Bass at Socket Mobile, Inc. (NASDAQ:SCKT) comes at a time when the company's stock is showing some interesting dynamics. According to InvestingPro data, Socket Mobile has seen a strong return of 24.21% over the last three months, indicating positive momentum in the stock price. This aligns with the director's decision to increase his stake in the company.
InvestingPro Tips highlight that Socket Mobile is currently trading at a low Price / Book multiple of 0.5, suggesting the stock may be undervalued relative to its book value. This could be a factor in Bass's decision to acquire more shares, as he may perceive the stock as a bargain at current levels.
It's worth noting that while the company has shown revenue growth of 2.95% over the last twelve months, with quarterly revenue growth of 20.78% in Q3 2024, Socket Mobile is not currently profitable. The company reported an operating income of -$2.53 million and a negative EBITDA of -$1.48 million for the last twelve months. These figures suggest that Socket Mobile is in a growth phase but still working towards profitability.
For investors interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further context to Socket Mobile's financial situation and market position. The InvestingPro product includes 5 more tips for SCKT, which could be valuable for those considering following the insider's lead or evaluating the company's prospects.
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