Crexendo , Inc.'s (OTC:NASDAQ:CXDO) Chief Technology Officer, David Tzat-kin Wang, has recently engaged in significant trading of the company's shares, according to a new SEC filing. On March 12, Wang sold 20,000 shares of common stock at a weighted average price between $5.50 and $5.52, resulting in total proceeds of approximately $110,192.
The transaction was part of a series of trades that also included the acquisition of 20,000 shares through the exercise of options at a price of $0.91 per share, amounting to a total transaction value of $18,200. Following these transactions, Wang's direct ownership in the company stands at 437,402 shares of common stock.
Investors often monitor insider trades such as these for insights into executive sentiment regarding their company's prospects. In the case of Crexendo, which specializes in telephone communications, these recent trades by a high-ranking officer may be of particular interest to current and potential shareholders.
Details of the sale indicate that the shares were sold in multiple transactions, which suggests a planned trading strategy rather than a response to market conditions or company performance. The transactions were executed as part of Wang's existing stock ownership plan and were reported in compliance with SEC regulations.
For those interested in the specifics of the transactions, the reported prices reflect a weighted average, and further details can be provided upon request, as noted in the filing's footnotes.
Crexendo, Inc., headquartered in Tempe, Arizona, operates within the telecommunications sector and has a history of corporate evolution, previously known as iMergent Inc. and NetGateway Inc. The company's stock is traded over-the-counter under the trading symbol CXDO.
InvestingPro Insights
Amid the recent insider trading activity by Crexendo, Inc.'s (OTC:CXDO) Chief Technology Officer, investors and market analysts are closely observing the company's financial health and future growth prospects. With a current market capitalization of 128.53 million USD, Crexendo's financial position and stock performance offer a mixed picture for stakeholders.
Despite a negative P/E Ratio of -342.14, reflecting challenges in profitability, the company has demonstrated a strong revenue growth of 41.66% over the last twelve months as of Q4 2023. This growth is further underscored by a significant gross profit margin of 59.63%, indicating a robust ability to generate earnings relative to revenues. Moreover, the company's EBITDA has grown by an impressive 136.17% in the same period, showcasing potential for operational efficiency improvements.
InvestingPro Tips suggest that Crexendo holds more cash than debt on its balance sheet, which is a positive sign of financial stability. In addition, analysts have revised their earnings upwards for the upcoming period, hinting at an optimistic outlook for the company's profitability. These insights are crucial for investors considering the recent insider trading and the company's future performance. For those seeking more in-depth analysis, there are 7 additional tips listed on InvestingPro, which can be accessed at https://www.investing.com/pro/CXDO.
For investors considering a deeper dive into Crexendo's financials or contemplating a position in the company, it may be worth noting that the stock has experienced a high return over the last year, with a 161.63% price total return. However, it has taken a hit over the last week and month, with price total returns of -23.95% and -22.87%, respectively. These metrics could be indicative of market volatility or a potential buying opportunity for those who believe in the company's long-term prospects.
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