John P. Szabo Jr., a major shareholder in Wag! Group Co. (NYSE:PET), has recently made significant stock purchases, according to the latest filings with the Securities and Exchange Commission. Over a series of transactions, Szabo acquired a total of $234,066 worth of the company's common stock, at prices ranging from $0.8204 to $0.99 per share.
The transactions took place over three separate days, with the first on September 19, where Szabo bought shares at a weighted average price of $0.8204, with prices in the range of $0.77 to $0.85. The subsequent purchase on September 20 was made at an average price of $0.99, with individual transactions ranging from $0.90 to $1.00. Lastly, on September 23, shares were bought at a weighted average of $0.93, with a price range between $0.90 to $0.98.
Following these acquisitions, Szabo's ownership in Wag! Group Co. has increased significantly. The filings reveal that the shares were indirectly held through Flint Ridge Partners L.P., where Szabo is the manager of the general partner and investment adviser, Flint Ridge Capital LLC. While Szabo disclaims beneficial ownership of these securities, he may be deemed to indirectly beneficially own them due to his managerial role in the entities holding the stocks.
Additionally, the SEC documents indicated that some of the common stock is held directly by Szabo's spouse, for which he disclaims beneficial ownership, except to the extent of his pecuniary interest.
Investors and market watchers often keep a close eye on insider transactions as they can provide valuable insights into an insider's view of the company's value. With these recent purchases, Szabo has shown a tangible confidence in the future of Wag! Group Co., a company specializing in personal services.
The transactions have been publicly filed and are available for review by the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission upon request.
In other recent news, Wag! reported a 6% decrease in revenues to $18.7 million in the second quarter of 2024, an intentional move to cut marketing expenses and boost short-term profitability. The pet care service provider also noted a record increase in adjusted EBITDA to $1.6 million. Additionally, Wag! has completed a $10 million public offering, the net proceeds of which are earmarked for significant debt payment. The company is prioritizing debt refinancing with an aim of achieving an 8-12% EBITDA margin by 2025. Future strategic growth plans include product expansion, partnerships, M&A, and a new WeCompare platform. The 2024 revenue forecast remains between $92 million and $102 million, with adjusted EBITDA projected to be in the range of $4 million to $8 million. The company is working towards positive free cash flow by lowering debt principal and refinancing the remaining balance. Wag! expects to close debt refinancing in the second half of the year, targeting a lower interest rate of around 10%.
InvestingPro Insights
Following the recent insider stock purchases by John P. Szabo Jr., a major shareholder in Wag! Group Co., investors may be interested in additional insights that could shed light on the company's financial health and stock performance. According to real-time data from InvestingPro, Wag! Group Co. boasts a robust gross profit margin of 79.58% as of the last twelve months ending in Q2 2024, highlighting the company's efficiency in managing its cost of goods sold relative to its revenue.
However, despite the strong gross profit margin, the company is not profitable over the last twelve months, with an adjusted operating income of -$4.3 million, indicating challenges in covering operational and other expenses. This aligns with one of the InvestingPro Tips, which suggests that analysts do not expect the company to be profitable this year. Additionally, the company's market capitalization stands at $46.07 million, which reflects the market's current valuation of the company.
Investors considering Wag! Group Co. should note that the stock has experienced significant return over the last week, with a 29.44% price total return, signaling a potential positive short-term sentiment among investors. However, the stock has been characterized by high price volatility, as indicated by another InvestingPro Tip, which may be a critical factor for risk-averse investors to consider.
For those looking to delve deeper into Wag! Group Co.'s financials and stock performance, InvestingPro offers additional tips and metrics. There are 12 more InvestingPro Tips available on their platform, which can provide a more comprehensive analysis of the company's outlook and investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.