Model N, Inc. (NYSE:MODN) Chief Revenue Officer Christopher Lyon has sold a significant portion of his holdings in the company, according to a recent filing. The transaction, which took place on March 14, involved the sale of 8,124 shares of common stock at an average price of $25.26, netting a total of $205,212.
Investors tracking insider activity may note that the sales occurred through a range of prices from $25.00 to $25.67 per share. The filing indicated that these transactions were executed in multiple parts and that the average price reflects a weighted sum of these individual sales.
Following the sale, Lyon's direct holdings in Model N have been adjusted to 229,721 shares. Additionally, he has an indirect stake of 30,473 shares through the Christopher J Lyon Revocable Trust, as detailed in the company's disclosure.
The filing also mentions that the sales were conducted in accordance with a pre-arranged Rule 10b5-1 trading plan. This plan was adopted by Lyon on December 14, 2023, and allows company insiders to sell shares at predetermined times to avoid accusations of trading on non-public, material information.
Model N, based in San Mateo, California, operates within the technology sector, providing services related to computer programming and data processing. The company's stock transactions by executives are closely watched by investors seeking insights into the confidence levels of management in the company's performance and outlook.
InvestingPro Insights
As investors consider the implications of Model N, Inc. (NYSE:MODN) Chief Revenue Officer Christopher Lyon's recent stock sale, it's important to look at the company's financial health and market performance for a fuller picture. According to InvestingPro data, Model N's market capitalization stands at approximately $976.2 million, reflecting the market's current valuation of the company.
Despite not being profitable over the last twelve months, analysts predict that Model N will generate net income growth this year, which could signal a turnaround in its financial performance. This optimism is tempered by the fact that 11 analysts have revised their earnings estimates downwards for the upcoming period. It's worth noting that Model N operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing some financial flexibility.
The company's stock is trading at a high Price/Book multiple of 7.98 and a high forward P/E ratio, which suggests that investors are expecting higher earnings growth in the future. The PEG ratio, which stands at 2.0, indicates that the stock's price is somewhat high relative to its earnings growth potential. Additionally, Model N has seen an EBITDA growth of 185.57% over the last twelve months as of Q1 2024, which may interest investors looking for companies with improving profitability metrics.
For those seeking more comprehensive analysis and additional insights, there are more InvestingPro Tips available for Model N. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This includes a detailed examination of the company's valuation multiples, profitability, and future earnings projections. There are a total of 9 InvestingPro Tips listed for Model N, which can be accessed at https://www.investing.com/pro/MODN.
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