Algorhythm Holdings executive sells over $10,000 in company stock

Algorhythm Holdings, Inc. (OTC:RIME) has reported a recent stock transaction involving its significant shareholder, Milton C. Ault III. According to the latest filings, Ault sold a total of 17,933 shares of common stock in two separate open market transactions. The sales took place on September 20 and September 23, with the total proceeds exceeding $10,428.

Investors tracking insider activity may note that the shares were sold at prices ranging from $0.5813 to $0.6033. The first transaction on September 20 involved 200 shares at a volume weighted average price of $0.6033, while the second transaction on September 23 included 17,733 shares sold at an average of $0.5813 per share.

Following these transactions, it was reported that Ault Lending, LLC, a wholly-owned subsidiary of Hyperscale Data, Inc., holds the shares indirectly. Milton C. Ault III, as the Executive Chairman of Hyperscale Data, is deemed to have voting and investment power over these securities.

The recent sales by Ault represent a noteworthy move in the market for Algorhythm Holdings, a company in the phonograph records and prerecorded audio tapes and disks industry. Shareholders and potential investors often keep a close eye on insider transactions as they can provide valuable insights into the company's performance and insider perspectives.



In other recent news, The Singing Machine Company, known for its consumer karaoke products, has transitioned to Algorhythm Holdings following the acquisition of SemiCab, an AI technology firm specializing in logistics. The new holding company, Algorhythm, will target investments in AI-driven technology companies, with the legacy karaoke business becoming a subsidiary. Algorhythm's CEO, Gary Atkinson, indicated that the new structure would enhance growth prospects by allowing each unit to leverage their respective brands.

The company is also facing potential delisting from The Nasdaq Capital Market due to failure to meet minimum bid price and equity requirements. Despite this, Algorhythm is optimistic about a strategic shift towards the automotive and connected TV sectors, following the integration of karaoke microphones into Tesla (NASDAQ:TSLA )'s North American models. The company plans to reduce product offerings and focus on WiFi-enabled models by 2025, reflecting their new market direction.

During a recent earnings call, despite a decrease in net sales and gross profit, the company expressed hope about its transformation into a technology-driven, asset-light, and higher-margin entity. These are among the recent developments for Algorhythm Holdings, formerly Singing Machine Company.
InvestingPro Insights


Amidst the recent insider trading activity at Algorhythm Holdings, Inc. (OTC:RIME), the company's financial health and market performance metrics provide additional context for investors. With a notably small market capitalization of 5.65 million USD, the company's size is an essential factor for investors to consider. Algorhythm's revenue in the last twelve months as of Q2 2024 stands at 29.05 million USD, indicating a significant decline of 45.07% in revenue growth, which could raise concerns about the company's current business trajectory.

One of the InvestingPro Tips for Algorhythm Holdings is its high price volatility, which is reflected in the stock's 22.99% price increase over the last month, despite a 42.0% decline over the last three months. This kind of fluctuation could be indicative of market sentiment and the speculative nature of the stock. Additionally, the company's price-to-book ratio as of Q2 2024 is -6.25, suggesting that the market values the company at less than its net asset value, which might be a point of interest for value investors. The stock's performance has also seen a significant downturn, with a 45.28% drop over the last six months.

For investors looking for more insights into Algorhythm Holdings, there are additional InvestingPro Tips available on https://www.investing.com/pro/RIME. These tips could provide a deeper understanding of the company's financial position and future prospects, which is particularly relevant given the insider selling activity and the company's recent performance in the market.

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Source: Investing.com