SES AI Corp (NYSE:SES) Chief Science Officer Gan Hong has sold 25,000 shares of the company's Class A common stock, according to the latest SEC filings. The transactions took place on May 8, 2024, and were executed at a weighted average price ranging from $1.35 to $1.47, resulting in a total value of approximately $35,617.
The sale was made under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This can help to avoid concerns about insider trading. It is noted that the shares sold are part of a larger holding that includes 656,309 shares of Class A common stock underlying restricted stock units (RSUs), which are subject to vesting conditions.
On the same day, Gan Hong also exercised options to acquire an additional 25,000 shares of Class A common stock at a price of $0.15 per share, amounting to a total transaction value of $3,750. These options were granted on March 14, 2019, and had become fully vested at the time of the transaction.
The filing also indicates that following these transactions, Gan Hong still owns a significant number of shares in the company, which includes both direct holdings and shares underlying vested options and RSUs.
Investors and market watchers often look to insider buying and selling as a signal of a company executive's belief in the company's future performance. Transactions like these are required to be reported to the SEC and are publicly disclosed to ensure transparency and fair dealing in the market.
SES AI Corp, which operates in the miscellaneous electrical machinery, equipment, and supplies industry, is headquartered in Woburn, Massachusetts. The company was formerly known as Ivanhoe Capital Acquisition Corp. before changing its name.
For further details on the transactions, including the exact number of shares sold at each price point within the range, interested parties can refer to the full Form 4 filing made with the Securities and Exchange Commission.
InvestingPro Insights
As SES AI Corp (NYSE:SES) navigates through its corporate transitions, investors are keeping a close eye on insider transactions for signs of confidence. The recent sale by Chief Science Officer Gan Hong may draw attention to the company's financial health and stock performance. Here are some insights based on real-time data and InvestingPro Tips:
SES AI Corp holds a market capitalization of $506.96 million, indicating its size within the electrical equipment industry. Despite the company's substantial market presence, it's important to note the challenges reflected in its financial metrics. The adjusted price-to-earnings (P/E) ratio stands at -9.21, suggesting that the company is not currently profitable. Additionally, the return on assets for the last twelve months as of Q1 2024 is -12.96%, which could raise concerns about asset efficiency and profitability.
InvestingPro Tips highlight that SES AI Corp holds more cash than debt, a positive sign of financial stability. However, the company is also characterized by high price volatility and weak gross profit margins. Analysts do not expect the company to be profitable this year, which may contribute to the stock's significant price decline over the past six months, with a total return of -28.28%.
For investors considering SES AI Corp's stock, it may be beneficial to explore the additional 9 InvestingPro Tips available for SES. These tips can provide a deeper understanding of the company's financial situation and market position. To access these tips and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
The company's next earnings date is scheduled for August 6, 2024, which will be a key event for investors to assess the company's performance and future outlook.
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