Inseego Corp. (NASDAQ:INSG) Executive Chairman Philip G. Brace recently acquired 10,000 shares of the company's common stock, according to a recent SEC filing. The shares were purchased on November 15 at a price of $12.40 each, totaling $124,000. Following this transaction, Brace holds a total of 177,763 shares in the company. This transaction reflects his direct ownership in Inseego Corp., a company known for its communications equipment and technology solutions.
In other recent news, Inseego Corp. has reported strong quarterly performance, with revenue and EBITDA surpassing guidance and achieving significant year-over-year increases. Despite the positive results, the company's guidance for the fourth quarter revenue was softer than expected, prompting TD Cowen to maintain a Hold rating but lower the price target from $20.00 to $16.00. On the other hand, Roth/MKM upgraded Inseego's stock rating from Neutral to Buy, citing reasons such as a significant reduction in net debt and robust growth in the company's core products.
Inseego's Q3 revenue saw a substantial increase of 27% to reach $61.9 million, marking robust growth driven by strong carrier promotions and the expansion of its SaaS management platform. The company's long-term senior debt was also reduced from over $160 million to $41 million. A new CEO is expected to be appointed by Q1 2025.
Despite a merger involving a major U.S. carrier customer causing sales pressure in its fixed wireless segment, Inseego has improved its gross margin to approximately 38%. The company is focusing on diversifying its revenue base and improving gross margins. These are the recent developments shaping the future of Inseego Corp.
InvestingPro Insights
Philip G. Brace's recent acquisition of Inseego Corp. (NASDAQ:INSG) shares comes at an interesting time for the company. According to InvestingPro data, Inseego's stock has experienced significant volatility recently, with a 39.57% decline in the past week and a 38.48% drop over the last month. This context makes Brace's purchase particularly noteworthy, potentially signaling confidence in the company's future prospects despite recent market challenges.
InvestingPro Tips highlight that Inseego's stock has shown a high return over the last year, with a remarkable 402.33% price total return. This long-term performance contrasts sharply with the recent short-term declines, suggesting a complex market sentiment towards the company.
It's worth noting that while Inseego has not been profitable over the last twelve months, analysts predict the company will turn profitable this year. This projection aligns with the company's improving financial metrics, such as a 107.28% EBITDA growth in the last twelve months as of Q3 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Inseego Corp., providing a deeper understanding of the company's financial health and market position.
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