Local Bounti Corporation (NYSE:LOCL) director Mark Joseph Nelson has sold a portion of his holdings in the company, according to a recent SEC filing. The transaction, which took place on March 13, 2024, involved the sale of 447 shares of common stock at a weighted average price of $2.5937 per share, totaling over $1,150.
The sale was conducted under a pre-arranged trading plan, known as Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid accusations of trading on non-public information. This plan had been adopted by Nelson on November 14, 2023.
Investors might note that the shares were sold in multiple trades, with prices ranging from $2.54 to $2.60. The reported average price reflects the weighted average of these sales. Post-transaction, Nelson still retains 31,048 shares of Local Bounti Corporation, indicating a continued vested interest in the company's success.
Local Bounti Corporation, listed under the Agriculture Production - Crops industry, is incorporated in Delaware and operates out of Hamilton, MT. The company's business involves innovative approaches to crop production, which have attracted investor interest in the agricultural technology space.
For those closely monitoring insider activity, the details of the exact number of shares sold at each price point can be provided upon request to the SEC, the issuer, or a security holder of the issuer. This level of transparency is often appreciated by shareholders and potential investors looking to understand the context of insider transactions.
The filing was signed by Kathleen Valiasek, as Attorney-in-Fact for Mark J. Nelson, on March 15, 2024.
InvestingPro Insights
Following the recent insider sale by director Mark Joseph Nelson of Local Bounti Corporation (NYSE:LOCL), investors may be interested in the company's financial health and market performance. As of the last twelve months leading up to Q3 2023, Local Bounti's market capitalization stands at a modest 21.26 million USD, reflecting a niche position within the Agriculture Production - Crops industry.
Despite the company's innovative approaches to crop production, Local Bounti has been grappling with financial challenges. The company's revenue growth has been substantial at 107.83% over the last twelve months, which may indicate potential for future expansion. However, the concern arises from the company's gross profit margin, which is relatively low at 5.15%. This suggests that while sales are growing, the cost of goods sold may be disproportionately high, impacting overall profitability. This is further evidenced by the company's negative operating income margin of -279.75%, indicating operational inefficiencies.
InvestingPro Tips for Local Bounti highlight several critical points for investors to consider. The company is dealing with a significant debt burden, which raises concerns about its ability to service interest payments. Additionally, analysts do not anticipate Local Bounti will be profitable this year, which is underscored by a negative P/E ratio of -0.23. However, it's worth noting that the stock has experienced a strong return over the last month, with a 12.76% increase in price total return. This recent uptick could be a signal to some investors of a potential turnaround or simply a short-term fluctuation in an otherwise volatile stock price history.
For those interested in a deeper analysis, InvestingPro provides more detailed insights and recommendations. There are 14 additional InvestingPro Tips available, which can provide further guidance on whether Local Bounti Corporation aligns with your investment strategy. To explore these insights, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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