Bradley Kreger, CEO of Velo3D, Inc. (NYSE:VLD), Makes Insider Sales Worth $887
In recent SEC filings, Bradley Allen Kreger, CEO of Velo3D, Inc. (NYSE:VLD), engaged in insider transactions involving the company's common stock. The executive sold a total of 713 shares in two separate transactions, amounting to approximately $887. These sales were conducted to cover tax liabilities and broker fees associated with the settlement of restricted stock units (RSUs). Kreger now holds 8,459 shares of common stock in the company.
Furthermore, Velo3D has announced a significant reduction in exercise price of certain existing warrants, issuing new ones with potential gross proceeds of $1.62 million. The company also implemented a 30% workforce reduction and reported a negative gross margin of 29% in Q1 2024. Despite challenges, Velo3D remains optimistic, projecting full-year revenue between $80 million to $95 million.
Analysis:
Velo3D's recent insider sales by CEO Bradley Kreger may not necessarily signal a change in company outlook, as they were related to tax obligations. The company's financial health is under scrutiny, with negative gross profit margins and significant debt burden. However, the low Price / Book multiple could indicate undervaluation, while analysts anticipate sales growth in the current year. Investors should proceed with caution due to the stock's considerable decline and volatility, but there may be potential for a rebound if market conditions improve.