In a recent transaction on April 10, Jason Holloway, the Executive Vice President and Chief Sales and Marketing Officer of WidePoint Corp (AMEX:WYY), acquired 1,000 shares of the company's common stock. The purchase, which took place on the open market, was made at a price of $2.26 per share, amounting to a total investment of $2,260.
This latest acquisition by Holloway is part of a series of transactions involving WidePoint Corp's stock. The transaction details, which were filed with the Securities and Exchange Commission, show that following the purchase, Holloway now directly holds 193,211 shares of WidePoint Corp. Additionally, the executive has an indirect ownership of 85,100 shares held in trust for his benefit.
The transaction underscores the ongoing financial activities of company insiders, which are closely watched by investors for insights into executive confidence in the company's prospects. The stock purchase by Holloway aligns with the patterns of insider transactions that can signal their view of the company's future performance.
Investors and market watchers often pay attention to such insider buying and selling activities as they can provide valuable signals about the health and future direction of a company. While these transactions are a regular part of insider activities, they are subject to regulatory filing requirements to ensure transparency in the markets.
WidePoint Corp, listed under the ticker AMEX:WYY, is known for providing computer integrated systems design services. The company has a history that includes a name change from ZMAX Corp in 1997, and it is incorporated in Delaware with a fiscal year ending on December 31.
The recent insider transaction by Holloway is a public record, and the details are available for investors to review. These filings offer a glimpse into the actions of company executives and can be a component of the due diligence process for current and potential investors.
InvestingPro Insights
In light of the recent insider stock purchase by Jason Holloway at WidePoint Corp, investors may find the following real-time data and InvestingPro Tips insightful for evaluating the company's current financial standing and market valuation:
The market capitalization of WidePoint Corp stands at a modest 18.88 million USD, reflecting the size of the company in the competitive tech sector. Despite a challenging profitability landscape, as indicated by a negative P/E ratio of -4.96, the company exhibits a significant price uptick of 37.58% over the last six months. This could suggest a growing investor optimism or a market reaction to internal company developments not directly tied to its current earnings.
Moreover, WidePoint Corp holds more cash than debt on its balance sheet, which is a positive sign for investors looking for financial stability in their investments. On the flip side, the company's gross profit margins remain weak at 14.76%, which could signal underlying challenges in cost management or pricing power.
For those considering WidePoint Corp as a potential investment, it is worth noting that the company is trading at a low revenue valuation multiple and has not been profitable over the last twelve months. Additionally, WidePoint Corp does not pay a dividend to shareholders, which might influence the investment decision for those seeking regular income from their stock holdings.
For a more comprehensive analysis, there are 5 additional InvestingPro Tips available that could further guide investment decisions. These tips can be accessed through the dedicated company page at InvestingPro. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24.
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