WidePoint Corporation (AMEX:WYY), a leading provider of computer integrated systems design services, has reported a recent transaction involving its Chief Operating Officer, Todd Dzyak. According to the latest filing, Dzyak sold 1,000 shares of company stock at a price of $3.60 per share, amounting to a total of $3,600.
This transaction, which took place on October 1, 2024, was disclosed in a Form 4 filing with the Securities and Exchange Commission on October 4, 2024. The sale has adjusted Dzyak's direct ownership in the company to 164,116 shares of Common Stock.
In addition to the sale, the filing also mentioned derivative securities in the form of stock options. These options, which represent the right to buy Common Stock, are set to vest on the third anniversary of the date of grant, as per the issuer's Amended and Restated 2008 Stock Incentive Plan. Following the transaction, Dzyak directly owns 9,714 stock options with a conversion or exercise price of $1.82, which are exercisable until August 4, 2028.
Investors and followers of WidePoint Corp. will continue to monitor insider transactions as they provide insights into executive confidence and company performance. The sale by the COO is a notable event, as transactions by high-level executives are often considered a reflection of their perspective on the company's current valuation and future prospects.
In other recent news, WidePoint Corporation reported a remarkable second quarter growth this year. The managed mobility services firm saw a 35% surge in its Q2 revenue, reaching $36 million. This marks the 28th consecutive quarter with positive adjusted EBITDA for the company. Major contract wins were also highlighted, including the Spiral 4 contract valued at $2.7 billion and a $254 million addition to the CWMS 2.0 contract.
WidePoint is actively seeking opportunities in the commercial sector, notably in the K-12 market. The company is also optimistic about the potential SEWP VI contract, which could further expand its market share. WidePoint's backlog stands at $320 million, with significant revenue conversion expected over the next two years. Despite challenges such as increased Days Sales Outstanding (DSOs) and $25.8 million in unbilled receivables, the company maintains a positive outlook.
The firm aims to achieve positive earnings per share in 2025 and anticipates achieving FedRAMP authorization by the end of 2024. These recent developments underscore WidePoint's commitment to technological advancements and market expansion.
InvestingPro Insights
To provide additional context to the recent insider transaction at WidePoint Corporation (AMEX:WYY), let's examine some key financial metrics and insights from InvestingPro.
WidePoint's market capitalization stands at $31.7 million, reflecting its position as a small-cap company in the computer integrated systems design sector. Despite the COO's recent sale of shares, the company has shown impressive revenue growth, with a 34.67% increase in quarterly revenue as of Q2 2024. This growth trajectory is further supported by a 23.44% increase in revenue over the last twelve months, reaching $124.24 million.
However, profitability remains a challenge for WidePoint. An InvestingPro Tip highlights that the company is not profitable over the last twelve months, which is reflected in its negative P/E ratio of -9.65. This aligns with the operating income margin of -2.42% for the same period.
On a more positive note, WidePoint's stock has demonstrated strong performance, with an InvestingPro Tip indicating a high return over the last year. In fact, the one-year price total return as of the latest data shows an impressive 101.78% gain. This substantial increase might provide some context for the COO's decision to sell a portion of his holdings, possibly to realize some gains.
It's worth noting that WidePoint operates with a moderate level of debt, according to another InvestingPro Tip. This could be seen as a balanced approach to capital structure, potentially providing the company with financial flexibility while managing risk.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 5 more InvestingPro Tips available for WidePoint, which could provide valuable perspective on the company's financial health and market position.
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