In a recent transaction on March 19, Robert Schaefer, President of Transformational at Stem, Inc. (NYSE:STEM), sold 100,000 shares of the company's common stock at an average price of $1.82 per share, totaling $182,000. Following the sale, Schaefer still holds a significant stake in the company, with 716,110 shares directly owned.
Stem, Inc., known for its involvement in miscellaneous electrical machinery, equipment, and supplies, has seen its executives actively participate in the trading of its shares. Schaefer's transaction is part of the regular financial activities reported by company insiders.
It is also noted that Schaefer has indirect ownership in the company through trusts. Specifically, the 2021 K.B. Schaefer Legacy Trust and the 2021 N.R. Schaefer Legacy Trust hold 268,943 shares each. Additionally, another trust holds 537,886 shares. Schaefer is reported to be the settlor of the trusts mentioned.
Investors often monitor insider transactions as they can provide insights into the executive's view of the company's future prospects. Stem, Inc.'s latest insider trading activity will likely be followed closely by the market for any potential signals it may send about the company's financial health and future performance.
InvestingPro Insights
Stem, Inc.'s recent insider trading activity coincides with a period of notable financial metrics and analyst expectations. The company's market capitalization stands at $306.08 million, reflecting its current valuation in the market. Despite a significant revenue growth of 27.15% in the last twelve months as of Q4 2023, Stem, Inc. operates with a challenging financial profile, including a negative price-to-earnings (P/E) ratio of -1.64. This suggests that investors are anticipating future earnings to turn positive, although the company has not been profitable over the last year.
The stock has experienced substantial price volatility, with a 1-month price total return of -38.14% and a 6-month return of -61.95% as of the 80th day of 2024. This volatility is also evident in the company's stock price, which is currently trading at 23.12% of its 52-week high. An InvestingPro Tip highlights that Stem, Inc. is quickly burning through cash, which may concern investors looking at the company's ability to sustain operations without additional financing.
Another InvestingPro Tip points out that Stem, Inc. may have trouble making interest payments on its debt, given its significant debt burden and weak gross profit margins of 1.81%. This, coupled with the company's high price volatility, suggests that investors may need to brace for potential fluctuations in the stock's value.
For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/STEM, which could provide further insights into Stem, Inc.'s financial health and market position. And, for a limited time, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can access a comprehensive list of metrics and tips tailored to your investment strategy.
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