Weave Communications CFO sells over $36k in company stock

Weave Communications, Inc. (NYSE:WEAV) Chief Financial Officer Alan Taylor recently engaged in a series of transactions involving the company's stock, according to the latest SEC filings. On September 13, Taylor sold 3,560 shares of Weave Communications at a price of $10.39 per share, totaling approximately $36,988.


The sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The plan had been adopted by Taylor on June 7, 2024.


In addition to the sale, the SEC filing also disclosed that on September 12 and 13, shares of Weave Communications' common stock were withheld by the company to satisfy tax obligations related to the vesting of restricted stock units. These transactions were exempt under SEC Rule 16b-3(e) and involved a total of 14,970 shares, valued between $10.35 and $10.59 per share, for a total amount of $158,364.


Following these transactions, Taylor's direct ownership in the company stands at 525,555 shares. The filing also noted that included in Taylor's total ownership are 430 shares acquired under the company's employee stock purchase plan on August 15, 2024, which are exempt under Rule 16b-3(c).


Investors and market watchers often pay close attention to insider sales as they can provide insights into an executive's view of the company's future prospects. Weave Communications, headquartered in Lehi, Utah, specializes in prepackaged software services and is incorporated in Delaware. The company's business address and the reporting owner's mailing address are both located at 1331 W Powell Way, Lehi, UT 84043.



In other recent news, healthcare software and payments platform Weave has reported noteworthy developments. The company announced a substantial year-over-year revenue growth of 21.4% to $50.6 million for Q2 2024. Additionally, Weave achieved a milestone by reporting positive adjusted EBITDA for the first time in its history. The company's gross margin also increased by 400 basis points to 71.9%.


Strategic partnerships, such as with Patterson Dental, and the introduction of an affiliate partner marketplace have contributed to Weave's robust performance. The company rounded off the quarter with a strong cash and short-term investments balance of $99 million.


Regarding future expectations, the company projects Q3 2024 revenue to fall between $50.7 million and $51.7 million, while full-year revenue for 2024 is estimated to range from $201 million to $203 million. These recent developments reflect Weave's consistent performance and strategic initiatives for continued growth.
InvestingPro Insights


Amidst the recent insider transactions at Weave Communications, Inc. (NYSE:WEAV), it's worth noting that the company's financial health and market performance have been areas of interest for analysts and investors. According to InvestingPro data, Weave Communications holds a market capitalization of approximately $760.5 million. Despite not being profitable over the last twelve months, the company has shown a strong revenue growth rate of 20.53% during the same period, indicating potential in its business model and market expansion efforts.


InvestingPro Tips suggest that Weave Communications is trading at a high Price / Book multiple of 10.78, which could imply that the market has high expectations for the company's future growth. Additionally, three analysts have revised their earnings upwards for the upcoming period, reflecting a positive sentiment on the company's earnings potential. With a fair value estimate by analysts at $15, which surpasses the current price of $10.59 per share, there appears to be an optimistic outlook for Weave Communications' stock value. Investors interested in a deeper dive into Weave Communications' prospects can find a total of 7 InvestingPro Tips at https://www.investing.com/pro/WEAV.


While insider sales can sometimes raise concerns among investors, the presence of a prearranged trading plan, as in the case of CFO Alan Taylor's transactions, serves to mitigate such worries. It's also noteworthy that the company has had a strong return over the last three months, with a 17.67% price total return, suggesting that the stock has been regaining some ground after previous declines.

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Source: Investing.com