Kenneth Arrigo Mainardis, Senior Vice President at Getty Images Holdings, Inc. (NYSE:GETY), recently sold 6,101 shares of the company's Class A Common Stock. The transaction, which took place on December 24, 2024, was executed at a weighted average price of $2.20 per share, resulting in a total sale value of $13,422. The sale comes as the stock, currently valued at a market cap of $945 million, has experienced significant volatility, with InvestingPro data showing a 58% decline over the past year.
This sale was part of a non-discretionary plan to cover mandatory tax withholding obligations related to the vesting and settlement of restricted stock units. Following the transaction, Mainardis now directly owns 208,912 shares of Getty Images. According to InvestingPro analysis, the stock's RSI indicates oversold territory, with the current price of $2.29 near its 52-week low of $2.10. Subscribers can access 10 additional ProTips and a comprehensive research report for deeper insights into GETY's valuation and prospects.
The sale was conducted under a Rule 10b5-1 trading plan, which provides a systematic approach for insiders to sell shares, helping them avoid potential accusations of insider trading. The transaction was executed in multiple trades at prices ranging from $2.17 to $2.26 per share. Despite recent price weakness, the company maintains a healthy gross profit margin of 73% and is expected to remain profitable this year.
In other recent news, Getty Images, a global visual content creator, reported a 4.9% year-on-year revenue increase in its third-quarter 2024 earnings call, reaching $240.5 million. The company's adjusted EBITDA stood at $80.6 million. Subscription and editorial revenues saw significant growth, with subscriptions now making up over half of the total revenue and editorial revenue benefiting from major events like the Paris Olympics. However, creative revenue experienced a decrease, and there was a deficit in free cash flow.
In partnership news, Getty Images and AI development company Clarifai announced a strategic collaboration. Through this partnership, Clarifai's enterprise customers will have access to AI-generated images using Getty Images' Generative AI technology. This integration aims to offer an alternative to traditional stock imagery, enabling the creation of unique visual content directly through the Clarifai platform.
These recent developments indicate Getty Images' commitment to strategic growth and debt reduction. The company has raised its revenue guidance for 2024 to a range of $934 million to $943 million, with adjusted EBITDA expectations set between $292 million and $294 million. Despite challenges such as a decrease in creative revenue and free cash flow, Getty Images continues to focus on generative AI initiatives and data licensing efforts.
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