Model N, Inc. (NYSE:MODN) has reported a recent transaction involving its Chief People Officer, Laura Selig, who sold shares of the company's common stock. According to the latest SEC filing, Selig sold a total of 2,655 shares at an average price of $25.32, resulting in a transaction value of over $67,224.
The shares were sold on March 14, 2024, and the prices at which the shares were sold ranged from $25.01 to $25.65. This was part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Following the transaction, Selig still owns a substantial number of shares, with a reported 141,517 shares remaining in her possession. The sale was conducted through a series of multiple transactions, and further details regarding the number of shares sold at each separate price within the range can be provided upon request.
Investors and followers of Model N, Inc. often monitor insider transactions as they provide insights into how executives and major shareholders view the stock's value and prospects. While the SEC filing provides the facts of the transaction, it does not necessarily explain the reasoning behind Selig's decision to sell at this time.
For those interested in the company's stock movements and insider transactions, Model N, Inc.'s filings are available for public viewing and provide detailed information about such activities.
InvestingPro Insights
Model N, Inc. (NYSE:MODN) has seen significant activity from insiders, with Chief People Officer Laura Selig's recent sale of shares catching the eye of investors. To provide further context to these transactions, it's important to consider the company's financial health and market performance as reflected in real-time data and insights from InvestingPro.
InvestingPro Data for Model N indicates a market capitalization of $976.2 million, signifying its size within the software and services sector. Despite a challenging revenue growth rate of 7.33% in the first quarter of 2024, the company has maintained a strong gross profit margin of 56.73% over the last twelve months as of Q1 2024. This suggests that while revenue increases are moderate, Model N is effective at controlling the cost of goods sold and maintaining profitability at the gross level.
The company's P/E ratio stands at a negative -30.84, reflecting investor sentiment about its earnings potential. This is further underscored by an adjusted P/E ratio for the last twelve months as of Q1 2024 at -74.16, indicating that investors are expecting future growth to justify the current share price levels.
InvestingPro Tips reveal that analysts are cautious about the company's near-term earnings, with 11 analysts revising their earnings downwards for the upcoming period. This could be a factor influencing insider decisions to sell shares. However, there's a silver lining as the company's net income is expected to grow this year, and analysts predict Model N will be profitable within the year.
Model N does not pay a dividend to shareholders, which might be a consideration for those looking for income-generating investments. The company is also trading at a high EBITDA valuation multiple and a high Price / Book multiple of 7.98, which might suggest that the stock is richly valued compared to its book value.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available for Model N at https://www.investing.com/pro/MODN. These tips could provide more insights into the company's financial health and future prospects. For those looking to access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 8 more tips listed in InvestingPro that can help investors make more informed decisions.
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