Cardlytics executive sells over $47k in stock By Investing.com

Cardlytics, Inc.’s (NASDAQ:) Chief Legal & Privacy Officer, Nicholas Hollmeyer, engaged in a series of stock transactions, according to a recent SEC filing. Hollmeyer sold a total of 5,956 shares of company stock on July 2, 2024, at an average price of $7.953 per share, totaling approximately $47,368.

The transactions occurred in a range of prices from $7.95 to $8.12. It was noted that the sales were made solely to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs) on July 1, 2024. Hollmeyer did not sell shares for any other purpose.

In addition to the sales, Hollmeyer also acquired shares through the vesting of RSUs. On July 1, 2024, he received 10,629, 1,578, and 581 shares of common stock for different sets of RSUs that vested. These RSUs represent a contingent right to receive shares of common stock and are part of a compensation structure that provides incentives for executives to remain with the company and aligns their interests with those of shareholders.

Following these transactions, Hollmeyer’s direct ownership in Cardlytics stands at 78,593 shares of common stock. The filing also detailed vesting schedules for the RSUs, indicating that additional shares are set to vest in future installments, provided Hollmeyer remains employed with the company.

Investors often monitor insider transactions as they can provide insights into executives’ perspectives on the company’s current valuation and future prospects. However, transactions related to tax obligations are generally viewed as routine and less indicative of confidence levels.

Cardlytics, Inc. specializes in services related to computer programming and data processing and is incorporated in Delaware. The company’s business address is located in Atlanta, Georgia.

In other recent news, Cardlytics had a strong start to the year, with first-quarter earnings revealing a 12% increase in billings and a significant rise in adjusted contribution. This marked the first time the company reported a positive adjusted EBITDA for a first quarter. For the upcoming second quarter, Cardlytics forecasts billings between $115 million and $126 million, and revenue estimates between $73 million and $81 million.

BofA Securities resumed its coverage on Cardlytics, issuing a Neutral rating, while Northland initiated coverage with an Outperform rating. Both firms highlighted Cardlytics’ unique position in the market through its partnerships with major financial institutions. However, BofA Securities noted potential challenges in Cardlytics’ growth due to its operating environment.

Cardlytics also raised $50 million in cash and took strategic steps to improve its capital structure. Despite a negative operating cash flow, the company anticipates it turning positive in the second half of the year. These are recent developments in the company’s journey.

InvestingPro Insights

As Cardlytics, Inc. (NASDAQ:CDLX) navigates through its financial landscape, recent metrics from InvestingPro paint a detailed picture of the company’s standing. Cardlytics’ market cap currently sits at a modest $383.43 million, reflecting its position in the market. This is particularly noteworthy as the company’s Chief Legal & Privacy Officer, Nicholas Hollmeyer, engages in stock transactions, potentially signaling his assessment of the company’s valuation.

An InvestingPro Tip highlights that Cardlytics may have trouble making interest payments on its debt, which is an important consideration for investors when evaluating the company’s financial health and risk profile. Additionally, the company’s stock price has been quite volatile, with a significant 42.64% price drop over the last three months, possibly influencing Hollmeyer’s decision to sell shares primarily to satisfy tax obligations.

From a performance standpoint, Cardlytics has experienced a modest revenue growth of 5.95% over the last twelve months as of Q1 2024. However, it’s important to note that analysts do not anticipate the company will be profitable this year, and it was not profitable over the last twelve months. These insights could be crucial for investors considering the implications of insider transactions on their investment decisions.

For those looking to delve deeper into Cardlytics’ financials and future prospects, InvestingPro offers a wealth of additional tips. There are currently 7 more InvestingPro Tips available, which can provide further guidance on investment decisions. To explore these tips and gain more in-depth analysis, visit: https://www.investing.com/pro/CDLX. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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