SAN FRANCISCO—Fong Morgan, General Counsel and Secretary of Maplebear Inc. (NASDAQ:CART), recently sold 11,325 shares of the company's common stock. The shares were sold at an average price of $42.97 each, totaling approximately $486,635. Following this transaction, Morgan retains ownership of 287,659 shares.
The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, which was adopted on November 21, 2023. This type of plan allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own, with the aim of avoiding potential insider trading accusations.
In other recent news, Instacart (NASDAQ:CART) reported a Gross Transaction Value (GTV) of $8.2 billion and an EBITDA of $208 million. The company also repurchased $117 million worth of its shares from D1 Iconoclast Holdings LP. Macquarie maintained its Outperform rating on Instacart and increased the price target to $50.00, citing the company's expanding retail media advertising strategy and partnership with Uber (NYSE:UBER).
Instacart and Foodsmart's joint Foodcare program demonstrated improved health outcomes for individuals with obesity and diabetes. The company also formed a strategic partnership with Family Dollar, enabling customers to use the Supplemental Nutrition Assistance Program (SNAP) Electronic Benefit Transfer (EBT) for online orders.
In analyst coverage, Jefferies initiated a Hold rating on Instacart, while Morgan Stanley (NYSE:MS) cut the company's price target from $45.00 to $41.00. Raymond James initiated coverage with a Market Perform rating, and Cantor Fitzgerald started coverage with an Overweight rating and a price target of $45.00. These are the latest developments in the company's journey.
InvestingPro Insights
While Fong Morgan's recent stock sale might raise eyebrows, it's important to consider Maplebear Inc.'s (NASDAQ:CART) broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $11.31 billion and has shown impressive revenue growth of 10.69% over the last twelve months as of Q2 2024. This growth trend is further supported by a robust 14.94% quarterly revenue increase in Q2 2024.
InvestingPro Tips highlight that Maplebear's management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. Additionally, the company holds more cash than debt on its balance sheet, indicating a strong financial position that may provide flexibility for future growth initiatives.
Despite these positive indicators, it's worth noting that Maplebear was not profitable over the last twelve months, with a negative operating income margin of 69%. However, analysts predict the company will be profitable this year, suggesting a potential turnaround in financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Maplebear Inc., providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.