An insider at System1, Inc. (NYSE:SST), a company specializing in computer programming and data processing services, has recently increased their stake in the company through a series of transactions. According to the latest Form 4 filing with the Securities and Exchange Commission, the transactions took place on March 15 and March 19, 2024.
The reporting person, identified as Blend Stanley, who is associated with the company as a ten percent owner, purchased a total of 11,613 shares of Class A Common Stock at an average price of $1.42 per share. The total amount invested in these transactions was $16,490. The purchases were made pursuant to a Rule 10b5-1 trading plan previously adopted by the reporting person, indicating that the transactions were planned in advance, and were not based on any material non-public information at the time of purchase.
The shares were purchased in multiple transactions at prices ranging from $1.41 to $1.42. After these transactions, the total number of shares owned by Blend Stanley stands at 6,625,215. It's noteworthy that the shares are held indirectly through the Lone Star Friends Trust, for which Blend Stanley serves as the trustee with sole voting and dispositive power over the assets.
The Form 4 filing provides transparency into the actions of company insiders, offering investors a glimpse into their investment moves. Such transactions are often closely watched by market participants as they can provide insights into an insider's view of the company's future prospects.
Investors interested in System1's stock performance and insider transactions can continue to monitor SEC filings and company announcements for further information.
InvestingPro Insights
With recent insider activity at System1, Inc. (NYSE:SST) drawing attention, it's crucial to consider the broader financial context of the company. The latest data from InvestingPro paints a complex picture. System1 has a market capitalization of $127.71 million, which is relatively small, reflecting the company's current valuation in the market. Additionally, the Price to Earnings (P/E) ratio stands at a negative -0.58, indicating that investors are not receiving earnings for their investment and the company is not currently profitable. This is further supported by the negative adjusted P/E ratio for the last twelve months as of Q4 2023, which sits at -1.5.
Looking closer at System1’s performance, the revenue for the last twelve months as of Q4 2023 was reported at $401.97 million, but this represents a significant decrease of 39.55% from the previous period. This downturn in revenue growth is a critical factor for potential investors to consider, especially when coupled with the InvestingPro Tips that indicate the company is quickly burning through cash and suffers from weak gross profit margins (11.62%).
Moreover, the stock price has experienced a notable decline, with a 1-week total return of -12.35% and a 3-month total return of -44.96%. These figures suggest a bearish trend in the short-term market sentiment towards the company's stock. It's also important to note that System1 does not pay a dividend to shareholders, which could be a deterrent for income-seeking investors.
For those considering a deeper dive into System1's financial health and stock performance, there are additional InvestingPro Tips available that could provide further insights into the company’s prospects. To explore these tips and gain a more comprehensive understanding, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/SST. There are currently 13 more tips listed in InvestingPro that could help investors make a more informed decision.
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