In a recent disclosure to the Securities and Exchange Commission, Thomas J. Pernice, a director at Trio Petroleum Corp. (NASDAQ:TPET), reported the sale of 25,000 shares of the company's common stock. The transaction, executed on October 17, 2024, was conducted under a Rule 10b5-1 trading plan that Pernice had adopted earlier this year on January 30.
The shares were sold at a weighted average price of $0.1535, resulting in a total transaction value of $3,837. Following this sale, Pernice holds 195,000 shares of Trio Petroleum directly. The transaction was part of a planned trading strategy, which allows insiders to sell shares at predetermined times and prices, providing a measure of protection against potential accusations of insider trading.
InvestingPro Insights
The recent insider sale by Director Thomas J. Pernice comes at a time when Trio Petroleum Corp. (NASDAQ:TPET) is facing significant financial challenges. According to InvestingPro data, the company's market capitalization stands at a modest $7.83 million, reflecting its small-cap status.
InvestingPro Tips highlight that TPET is "quickly burning through cash" and that its "short-term obligations exceed liquid assets." These factors may have influenced the director's decision to sell shares under the pre-established trading plan. Additionally, the company is "not profitable over the last twelve months," with an operating income margin of -4,534.33% for the last twelve months as of Q3 2024, indicating severe operational inefficiencies.
The stock's performance has been notably weak, with InvestingPro data showing a 38.68% price decline over the past three months and a 58.5% drop over six months. This aligns with the InvestingPro Tip that the "stock has taken a big hit over the last six months."
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for TPET, providing a deeper understanding of the company's financial position and market performance.
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