B. Riley financial executives sell over $1.4 million in Synchronoss stock By Investing.com

Executives at B. Riley Financial, Inc. have recently sold shares of Synchronoss Technologies Inc (NASDAQ:), a global leader in cloud, messaging, and digital transformation solutions. Over the course of three days, significant stock sales were executed, totaling over $1.4 million.

The transactions occurred on August 15, 16, and 19, with prices for the shares sold ranging from $11.8267 to $12.1226. On the first day, 55,473 shares were sold at an average price of $11.8851. The following day saw the sale of 23,290 shares at an average price of $11.8267. The final sale involved 40,713 shares at an average price of $12.1226.

These sales were conducted indirectly by BRF Investments, LLC, which is linked to B. Riley Financial, Inc. and its associated entities. The shares owned following the transactions by BRF Investments, LLC amounted to 1,048,741.

In addition to these sales, the filing also disclosed holdings by other related parties. B. Riley Securities, Inc. held 2,740 shares indirectly, while Bryant R. Riley, Co-Chief Executive Officer of B. Riley Financial, held 49,523 shares directly. Furthermore, Bryant R. Riley, as UTMA custodian, held an additional 273 shares each for Charlie Riley, Susan Riley, Abigail Riley, and Eloise Riley.

The Form 4 filing was signed by Bryant R. Riley, Co-Chief Executive Officer of B. Riley Financial, Inc., indicating his acknowledgment of the reported transactions. It is important to note that each reporting individual and entity has disclaimed beneficial ownership of the reported shares, except to the extent of their respective pecuniary interest.

Investors often monitor insider transactions as they may provide insights into the executives’ outlook on the company’s future performance. However, these transactions can be subject to various personal financial considerations and should not be taken as the sole indicator of a company’s health or future trajectory.

In other recent news, Synchronoss Technologies revealed an impressive performance in its second-quarter financial results, reporting revenues of $43.5 million. This marks a 5.9% year-over-year increase and a slight 1.1% rise from the previous quarter, meeting expectations. The cloud computing and messaging company’s adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) reached $13.0 million, surpassing the estimated $10.5 million.

Roth/MKM, an analyst firm, has responded to these developments by raising its price target for Synchronoss shares to $11.00, up from the previous $4.05, while maintaining a Neutral rating on the stock. The firm cited effective cost controls and successful debt refinancing efforts as positive factors contributing to the higher AEBITDA.

Other recent developments include a strategic partnership with Verizon (NYSE:) and the appointment of a new country manager for Japan. Synchronoss Technologies also anticipates 5-8% revenue growth for the year, expecting adjusted gross margins to remain above 75%. The company forecasts a positive cash flow trajectory for the rest of the year, anticipating at least $10 million in net cash flow.

InvestingPro Insights

As Synchronoss Technologies Inc (NASDAQ:SNCR) navigates through its corporate activities, investors and market spectators are closely observing the company’s financial health and stock performance. With executives at B. Riley Financial, Inc. recently selling a substantial number of shares, understanding the broader financial context becomes crucial. Here are some key insights from InvestingPro that shed light on Synchronoss Technologies’ current market position:

The company’s market capitalization stands at a modest $132.54 million, reflecting its size within the technology sector. Interestingly, Synchronoss Technologies has been experiencing significant revenue growth, with a notable increase of 33.39% over the last twelve months as of Q2 2024. This growth is further exemplified by a gross profit margin of 75.9%, which is considered impressive and indicates the company’s ability to manage its cost of goods sold effectively.

InvestingPro Tips highlight that management has been actively buying back shares, a move that can signal confidence in the company’s prospects and potentially enhance shareholder value. Additionally, two analysts have revised their earnings estimates upwards for the upcoming period, suggesting a positive outlook on the company’s financial performance.

However, it’s important to note that Synchronoss Technologies has not been profitable over the last twelve months, and the stock price has experienced significant volatility. The company’s P/E ratio stands at -3.3, and it has an adjusted P/E ratio of -8.29 for the last twelve months as of Q2 2024, indicating that investors are currently valuing the company at a loss. Despite these challenges, the stock has delivered strong returns over the last week, month, and three months, with total price returns of 11.72%, 34.85%, and 20.02%, respectively.

For those interested in diving deeper into the financial nuances of Synchronoss Technologies, InvestingPro offers additional tips, including insights on the company’s free cash flow yield, liquidity position, and valuation multiples. In total, there are 16 InvestingPro Tips available for SNCR, which can be accessed for further detailed analysis and investment considerations.

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