Elwood Norris, a significant shareholder in Wrap Technologies, Inc. (NASDAQ:WRAP), has reported multiple transactions involving the sale of company shares. Over a period from October 10 to October 17, Norris sold a total of 102,355 shares of common stock. The sales were executed at prices ranging from approximately $1.54 to $1.84 per share, resulting in a total transaction value of $173,162.
Following these transactions, Norris holds 938,549 shares directly. Additionally, he maintains an indirect ownership of 5,451,553 shares through a family trust. Wrap Technologies is known for its innovative law enforcement solutions, and these transactions are a part of the regular trading activities by insiders.
In other recent news, Wrap Technologies Inc. reported preliminary revenue of $6.1 million for FY-23, with a projected 54.7% increase in revenue for the first quarter of 2024. The company has also made significant amendments to its Series A Convertible Preferred Stock terms, allowing for the payment of dividends due on certain dates to be made in either cash or common stock at a discounted rate. Furthermore, Wrap Technologies announced a pilot program with the San Francisco Police Department, integrating 60 of its BolaWrap devices into their Field Training/Force Options Unit.
However, the company has faced compliance issues with the Nasdaq Stock Market due to delays in filing its Annual Report and Quarterly Report. In response, Wrap Technologies has submitted a comprehensive compliance plan to Nasdaq. Additionally, the company's board member, Kevin Mullins, has resigned, creating a vacancy yet to be filled.
In other developments, Wrap Technologies has set a deadline for 2024 shareholder proposals and director nominations. This announcement, based on a recent SEC filing, encourages shareholders to participate in the governance of the company by submitting their proposals and nominations within the given timeframe. These are the recent developments within Wrap Technologies.
InvestingPro Insights
Recent insider transactions at Wrap Technologies, Inc. (NASDAQ:WRAP) have occurred against a backdrop of intriguing financial metrics and market performance. According to InvestingPro data, WRAP's stock has shown significant volatility, with a notable 15.54% return over the past month and a 10.32% gain in just the last week. This recent upward momentum contrasts with the company's year-to-date performance, which shows a substantial decline of 44.84%.
Despite the recent positive price action, InvestingPro Tips highlight that WRAP is "quickly burning through cash" and is "not profitable over the last twelve months." These factors may have influenced Elwood Norris's decision to sell shares. The company's financial health is further reflected in its operating income margin of -229.63% for the last twelve months as of Q2 2023, indicating significant challenges in achieving profitability.
Interestingly, WRAP is trading at a high Price / Book multiple of 20.09, suggesting that investors are placing a premium on the company's assets despite its current financial struggles. This valuation, coupled with the company's innovative focus in law enforcement solutions, may explain the recent stock price resilience in the face of profitability concerns.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for WRAP, providing deeper insights into the company's financial position and market dynamics.
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