Cardlytics COO Gupta Amit sells shares worth over $59,000 By Investing.com

Cardlytics, Inc. (NASDAQ:) Chief Operating Officer, Gupta Amit, recently sold shares in the company, according to a new SEC filing. The transactions, which took place on July 2, 2024, involved the sale of 7,507 shares of common stock, with the total value of the sales amounting to approximately $59,703.

The sales were executed at a weighted average price of $7.953, with individual transactions occurring within the price range of $7.85 to $8.12. It is noted that these shares were sold to cover tax withholding obligations related to vested Restricted Stock Units (RSUs). The filing clarified that the shares were not sold for any other purpose.

Additionally, the filing indicated that on July 1, 2024, Amit acquired 14,349 RSUs, which represent a contingent right to receive an equal number of shares of common stock. These units are part of an award that is set to vest in eight equal installments, provided Amit remains employed with Cardlytics. The vesting dates extend from July 1, 2024, to April 1, 2026.

Following the sales, Amit continues to have a significant holding in the company with 129,518 shares of common stock. The transactions are part of the standard disclosures that executives make regarding their stock dealings, providing transparency for investors and the market.

Investors often monitor insider transactions as they can provide insights into executives’ perspectives on the company’s value and prospects. However, it is also common for insiders to sell shares for personal financial planning, diversification, or liquidity reasons.

Cardlytics, Inc. specializes in services related to computer programming, data processing, and other technology-related fields. The company is headquartered in Atlanta, Georgia, and is incorporated in Delaware.

In other recent news, Cardlytics has reported a robust start to the year with its first-quarter earnings revealing a 12% increase in billings and a significant rise in adjusted contribution, marking the first time the company reported a positive adjusted EBITDA for a first quarter. Cardlytics also raised $50 million in cash and made strategic moves to improve its capital structure. Despite a negative operating cash flow, the company expects it to turn positive in the second half of the year.

In terms of analyst coverage, BofA Securities resumed its coverage on Cardlytics, issuing a Neutral rating and setting a price target of $11.00, while Northland initiated coverage, assigning an Outperform rating and setting a price target of $14.00. Both firms highlighted the company’s unique position due to its strong relationships with financial institutions and potential in the digital advertising sector.

The company’s revenue growth was noted in both the U.S. and U.K., with the U.K. experiencing a 56% increase. For the upcoming second quarter, Cardlytics forecasts billings between $115 million and $126 million, and revenue estimates between $73 million and $81 million. Lastly, Cardlytics is investing in sales and technology, including the development of a self-serve platform for advertisers and the expansion of the Bridg retail media network, as part of its recent developments.

InvestingPro Insights

Cardlytics, Inc. (NASDAQ:CDLX) has been navigating a challenging financial landscape, as reflected in the recent insider transactions and market performance. The company’s current market capitalization stands at $383.43 million, underlining its mid-cap status in the technology sector. Despite a modest revenue growth of 5.95% over the last twelve months as of Q1 2024, the company’s profitability remains under scrutiny.

An InvestingPro Tip highlights that Cardlytics may have difficulty making interest payments on its debt, which is a critical consideration for investors looking at the company’s financial health. Additionally, the stock’s price volatility is notable; investors should be aware that the price has dropped significantly by 42.64% over the last three months, which could reflect market sentiment about the company’s performance and outlook.

From a valuation standpoint, the negative P/E ratio of -1.8 accentuates that Cardlytics has not been profitable over the last twelve months. Furthermore, it’s important to note that analysts do not expect the company to be profitable this year, which aligns with the reported operating income margin of -19.22%. However, on a positive note, Cardlytics’ liquid assets do exceed its short-term obligations, suggesting some degree of financial stability in the near term.

For investors and market observers looking to delve deeper into Cardlytics’ prospects, there are additional InvestingPro Tips available that could provide further insights. In fact, there are six more tips listed on InvestingPro that could help in making a more informed investment decision. Interested readers can take advantage of a special offer using the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive suite of tools and analytics to navigate market complexities.

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