Alclear Investments II, LLC, a significant shareholder in Clear Secure, Inc. (NYSE:YOU), has sold a total of 250,000 shares of the company's Class A Common Stock, according to a recent SEC filing. The transactions, which took place on September 17, 2024, amounted to approximately $8.07 million, with the shares being sold at a weighted average price of $32.30, ranging from $32.00 to $32.61.
The sale was executed automatically under a Rule 10b5-1 trading plan, which had been previously established on March 12, 2024. Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stocks, providing a defense against accusations of insider trading.
Following the transaction, Alclear Investments II's holdings in Class A Common Stock have been reduced to zero. This change in ownership comes after a conversion of Class B Common Stock into Class A Common Stock on a one-for-one basis, as outlined by Clear Secure's Certificate of Incorporation. The converted shares were immediately used to settle the aforementioned sale transaction.
In addition to the sale, Alclear Investments II was involved in an exchange of non-voting common units of Alclear Holdings, LLC, for Clear Secure's Class B Common Stock, according to the terms of the Exchange Agreement dated June 29, 2021. The Class B Common Stock, which carries 20 votes per share along with economic rights, including dividends and liquidation distributions, was exchanged on a one-for-one basis with the common units and corresponding shares of Class D Common Stock, which have 20 votes per share but no economic rights.
The SEC filing also noted that due to its relationship with Mr. Kenneth Cornick, the sole manager of Alclear Investments II, LLC, the reporting entity may be deemed to be a director by deputization. Lynn Haaland, serving as an Attorney-in-Fact, signed the filing on September 19, 2024.
Investors and interested parties can request detailed information regarding the number of shares sold at each separate price within the reported range from Alclear Investments II, LLC.
In other recent news, Clear Secure, Inc. has reported significant growth in the fiscal second quarter of 2024. The company saw a 25% increase in revenues, a 137% rise in adjusted EBITDA and added a record 2.3 million members during the quarter. This expansion has contributed to robust growth in Clear Travel and Clear Verified. In addition, Clear Secure's operations and free cash flow rose by 65% and 90% respectively, prompting the company to raise its free cash flow growth guidance for the fiscal year to at least 40%.
On the executive front, Clear Secure announced the upcoming departure of Kasra Moshkani, the Executive Vice President, Verified. Moshkani, who has played a significant role in the company's operations since joining in 2021, will leave on September 18, 2024, to pursue other opportunities. The company has initiated the process to find a suitable replacement.
Clear Secure also disclosed the acquisition of Sora, which is anticipated to positively impact partner services. The company launched new technology enhancements and Clear Perks for Clear Plus members and announced an airport innovation campaign. These recent developments underscore Clear Secure's continued focus on innovation and customer experience, with a target to reach 50 million members by 2025.
InvestingPro Insights
Clear Secure, Inc. (NYSE:YOU) has been a topic of interest for investors, especially in light of recent transactions by significant shareholders. To provide a deeper understanding of the company's financial health and stock performance, here are some insights based on real-time data and InvestingPro Tips:
The company boasts a robust market capitalization of $4.58 billion, indicating its significant presence in the market. Additionally, Clear Secure's revenue has shown impressive growth over the last twelve months as of Q2 2024, with a 32.44% increase, underscoring its expanding business operations. This financial growth is complemented by a strong gross profit margin of 63.03%, reflecting the company's efficiency in managing its cost of goods sold.
InvestingPro Tips highlight that Clear Secure holds more cash than debt on its balance sheet, which is a reassuring sign for investors concerned about the company's financial stability. Furthermore, the stock has experienced a significant return over the last week, with a 10.14% price total return, and analysts have revised their earnings upwards for the upcoming period, suggesting growing optimism around the company's profitability.
Investors may also find it notable that the stock has been trading near its 52-week high, at 97.1% of the peak price, reflecting strong investor confidence. For those seeking more in-depth analysis and additional InvestingPro Tips, including insights on share buybacks and earnings growth expectations, visiting the dedicated page for Clear Secure on InvestingPro can provide valuable information. Currently, there are 7 more InvestingPro Tips available for Clear Secure, offering a comprehensive view of the company's performance and potential investment opportunities.
With its next earnings date slated for November 11, 2024, investors will be keenly observing Clear Secure's financial results and future outlook. The company's recent share performance and solid financial metrics provide a compelling narrative for those considering an investment in its stock.
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