In a recent move, Nancy Lyskawa, EVP & Chief Client Officer at Rimini Street , Inc. (NASDAQ:RMNI), has sold a total of 8,772 shares of the company's common stock. The transaction, which took place on April 8, 2024, was executed at an average price of $2.977 per share, culminating in a total sale value of $26,114.
This sale was part of an automatically-triggered "sell-to-cover" transaction related to the payment of withholding tax obligations. These obligations were connected to the vesting of Restricted Stock Units and Performance Units. According to the footnotes in the filing, the exact number of shares needed to cover the tax obligations was not determined until the transaction date, and the executive had no control over the timing of the sale. This was initiated by Rimini Street as per the company's policy for handling tax withholdings on equity compensation.
Investors may find more details about the vesting events that led to this automatic sale in a previous Form 4 filed by Lyskawa on April 5, 2024. After the completion of the transaction, Lyskawa's holdings in Rimini Street stock decreased, but she still retains ownership of 123,531 shares in the company.
Rimini Street, headquartered in Las Vegas, Nevada, specializes in business services and operates under the SIC code 7389. The company was formerly known as GP Investments Acquisition Corp. before changing its name and is incorporated in Delaware.
The stock transactions of company executives are closely watched by investors as they can provide insights into management's perspective on the company's current valuation and future prospects.
InvestingPro Insights
The recent sale of shares by Nancy Lyskawa at Rimini Street, Inc. (NASDAQ:RMNI) aligns with a broader context reflected in the company's performance metrics and market sentiment. Rimini Street's market capitalization currently stands at $266.06 million, and the company holds a price-to-earnings (P/E) ratio of 9.98, which adjusts to a slightly lower 7.96 when considering the last twelve months as of Q4 2023. This indicates a potentially undervalued stock, especially when paired with a PEG ratio of 0.01, suggesting that the company's earnings growth is not fully reflected in its current share price.
InvestingPro data also shows that Rimini Street had a revenue of $431.5 million over the last twelve months as of Q4 2023, with a healthy growth rate of 5.33%. The company's gross profit margin stands at an impressive 62.34%, highlighting its ability to maintain profitability. Despite a challenging week for the stock, with a price total return of -11.9%, Rimini Street has experienced a significant 37.04% price uptick over the last six months. This volatility in share price may present opportunities for investors.
Among the InvestingPro Tips, it's notable that Rimini Street holds more cash than debt on its balance sheet, which is a positive sign for financial stability. Additionally, analysts predict the company will be profitable this year, which could be a reassuring factor for investors considering the recent sell-to-cover transaction by an executive officer.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available, including insights on the company's short-term obligations versus liquid assets and its revenue valuation multiple. Subscribers can access these tips and more by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.