ZipRecruiter Inc.'s (NYSE:ZIP) Executive Vice President and Chief Technology Officer, Boris F. Shimanovsky, has recently engaged in multiple transactions involving the company's stock, according to the latest SEC filings. On March 15, Shimanovsky sold 9,800 shares of Class A Common Stock at prices ranging from $12.00 to $12.36, with the total transaction amounting to approximately $118,848.
In addition to the sale, the filings also show that Shimanovsky acquired 24,598 shares at no cost and converted 34,375 shares of Class B Common Stock into Class A Common Stock, also at zero cost. It's worth noting that these acquisitions did not result in any direct financial outlay for the executive.
Furthermore, Shimanovsky disposed of 20,743 shares at a price of $12.55 per share to cover tax withholdings associated with the vesting of restricted stock units (RSUs). This transaction, which is exempt under Section 16b-3(e), totaled around $260,324. The RSUs are a form of compensation that grant the holder the right to receive shares of stock upon vesting, and often involve tax obligations that are settled by relinquishing a portion of the vested shares.
Investors might be interested in the trading plan under which these transactions occurred. According to a footnote in the SEC filing, the sales were executed pursuant to a Rule 10b5-1 trading plan that was adopted by Shimanovsky on December 15, 2023. Such plans allow company insiders to sell shares over a predetermined period of time, reducing the potential for accusations of trading on insider information.
The transactions have resulted in a change in Shimanovsky's holdings, which now include an increased number of Class A shares, as well as a reduced number of RSUs. These movements are part of the normal course of stock ownership and compensation for executives at publicly-traded companies.
ZipRecruiter, a company that operates in the computer programming and data processing sector, has not commented on these transactions. The company, based in Santa Monica, California, continues to be a significant player in the online employment marketplace.
InvestingPro Insights
Amid the recent stock transactions by ZipRecruiter Inc.'s (NYSE:ZIP) Executive Vice President and Chief Technology Officer, Boris F. Shimanovsky, investors may gain additional insights by considering key metrics and InvestingPro Tips. The company, with a market capitalization of approximately $1.15 billion, has been demonstrating noteworthy financial performance and management actions.
One InvestingPro Tip highlights that management has been aggressively buying back shares, which can signal confidence in the company's prospects and potentially support the stock price. Moreover, ZipRecruiter has been operating with a high gross profit margin of around 90.04% over the last twelve months as of Q1 2023, which suggests strong profitability in its core operations.
InvestingPro Data further shows a Price to Earnings (P/E) ratio of 23.86 and an adjusted P/E ratio for the same period of 22.23. While the company's revenue has seen a decline of 28.62% over the last twelve months, the impressive gross profit margins may indicate an efficient cost structure or strong pricing power within its market segment.
However, it's important to note that analysts have revised their earnings downwards for the upcoming period, and a sales decline is anticipated in the current year. This could be a point of concern for potential investors. Additionally, the stock has not performed well over the last month, with a 1-month price total return of -18.92%.
For those interested in a deeper dive into ZipRecruiter's financials and strategic analysis, there are additional InvestingPro Tips available. These include insights on shareholder yield, the company's debt levels, and its valuation in terms of Price / Book multiple. To access these insights and more, visit https://www.investing.com/pro/ZIP. Moreover, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where 11 more tips await to guide your investment decisions.
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