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Wag! group co. CMO sells shares for $3,927

Published 11/20/2024, 08:50 AM

PET
9.88%

Patrick McCarthy, the Chief Marketing Officer of Wag! Group Co. (NASDAQ:PET), recently sold 23,105 shares of the company’s common stock. The shares were sold at a price of $0.17 per share, amounting to a total transaction value of $3,927. Following this sale, McCarthy retains ownership of 699,500 shares.

The transaction was conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs). This sale was part of a predetermined plan under the company's incentive program and was not a discretionary trade by McCarthy.

In other recent news, Wag! Group's stock rating has been downgraded from Buy to Hold by Craig-Hallum, following a disappointing third quarter financial performance. The company reported a significant decrease in revenue to $13.2 million, a 39% drop from the previous year, and an adjusted EBITDA loss of $1.9 million. Analysts at Craig-Hallum cited inefficient marketing strategies and changes in Google (NASDAQ:GOOGL)'s algorithm as reasons for the underperformance, particularly impacting the Wellness segment of the company.

In response to these developments, Wag! Group has been exploring strategic alternatives to improve its financial stability, including the potential sale of strategic assets. The company has also been adapting its marketing strategy, diversifying acquisition channels and increasing advertising spend on platforms such as Meta (NASDAQ:META), TikTok, and Amazon (NASDAQ:AMZN).

For the fourth quarter, Wag! Group projects revenue to range between $15 million and $18 million, with adjusted EBITDA expected to fall between a $0.5 million loss and a $0.5 million profit. The company has set full-year 2024 revenue guidance at $70 million to $73 million. These are the recent developments in Wag! Group's efforts to navigate the changing digital landscape and return to profitability.

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InvestingPro Insights

While Patrick McCarthy's recent stock sale was part of a predetermined plan, it's worth examining Wag! Group Co.'s (NASDAQ:PET) current financial position and market performance to provide context for investors.

According to InvestingPro data, Wag! Group's market capitalization stands at a modest $8.93 million, reflecting its status as a small-cap company. The stock's recent performance has been challenging, with a significant 77.72% decline over the past month and an 89.84% drop in the last six months. These figures align with an InvestingPro Tip indicating that the stock has taken a big hit over the last week and has fared poorly over the last month.

Despite these setbacks, Wag! Group maintains impressive gross profit margins of 77.9% for the last twelve months as of Q3 2023. This strength is highlighted by an InvestingPro Tip, suggesting that the company's core business model may still have potential.

However, investors should be cautious. Another InvestingPro Tip warns that the company is quickly burning through cash, which could be a concern given the current market conditions. Additionally, analysts do not anticipate the company will be profitable this year, which may explain the recent stock performance.

For those interested in a deeper analysis, InvestingPro offers 17 additional tips for Wag! Group, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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