NCR Voyix Corp (NYSE:VYX) has reported a recent stock purchase by one of its top executives, providing a signal to the market of insider confidence. Brian J. Webb-Walsh, the company's Executive Vice President and Chief Financial Officer, acquired 10,000 shares of common stock on August 8, 2024, at an average weighted price of $11.51 per share.
The transaction, part of a series of purchases made at prices ranging from $11.49 to $11.51, resulted in a total investment of approximately $115,100. Following this acquisition, Webb-Walsh's reported ownership in NCR Voyix Corp now totals 142,288 shares. This figure includes an additional 1,458 shares obtained through the company's employee stock purchase plan since his last report.
NCR Voyix Corp, with a history dating back to its former names as NCR Corp and National Cash Register Co, operates in the niche market of calculating and accounting machines, excluding electronic computers. The company, incorporated in Maryland, has its business headquarters in Atlanta, Georgia, and is part of the 06 Technology sector.
Investors often monitor insider transactions such as these for insights into executive sentiment regarding their company's stock. While such transactions are not necessarily indicative of future stock performance, they can provide context for the company's financial health and the executive's view on its valuation.
The purchase made by Webb-Walsh aligns with the ongoing financial activities within NCR Voyix Corp and provides stakeholders with additional data points to consider in their investment decisions.
In other recent news, NCR Voyix announced significant changes in its Q2 2024 earnings call. The company reported a 5% increase in normalized software revenue, while services revenue saw a slight 2% decrease. As part of a strategic shift towards software and services, NCR Voyix sold its Digital Banking business for $2.45 billion, with an additional contingent consideration of up to $100 million. The sale is part of a broader strategy to reduce debt and align operating costs.
The company has also entered into a partnership with Ennoconn Corp. for hardware solutions and initiated a cost-alignment program, resulting in a reduction of 800 jobs and an annual saving of $75 million. NCR Voyix is focusing on platform conversions, market share growth, and investments in its Voyix commerce platform. The company is targeting a 20% EBITDA margin and 40% free cash flow conversion by 2025.
These recent developments represent NCR Voyix's commitment to its transition towards a software and services focus. The company has updated its 2024 outlook with pro forma revenue of approximately $2.15 billion and pro forma adjusted EBITDA of approximately $430 million. Despite a decrease in services revenue and challenges in the hardware market, the strategic sale of the Digital Banking business and partnership with Ennoconn are expected to provide a solid foundation for future growth.
InvestingPro Insights
Amidst the recent insider stock purchase by NCR Voyix Corp's (NYSE:VYX) Executive Vice President and Chief Financial Officer, Brian J. Webb-Walsh, the market is keen to understand the underlying financial health and future prospects of the company. An analysis of real-time data from InvestingPro offers a deeper dive into the company's current standing.
InvestingPro data indicates that NCR Voyix Corp has a market capitalization of $1.61 billion, reflecting its size within the technology sector. Despite a significant revenue growth of 108.31% in the last twelve months as of Q2 2024, the company's stock has experienced a notable price drop, trading near its 52-week low. The P/E ratio stands at -2.7, suggesting that investors are currently not expecting earnings to cover the stock price. This is further supported by a negative price/book ratio of -18.98, which typically indicates that the market may have concerns about the company's value or profitability.
From an operational standpoint, the gross profit margin is at 25.27%, which gives an insight into the company's profitability from its core business activities. However, the EBITDA growth has decreased by -33.69%, indicating potential challenges in the company's earnings before interest, taxes, depreciation, and amortization.
An InvestingPro Tip to consider is that the stock's Relative Strength Index (RSI) suggests it is currently in oversold territory. This might attract investors looking for potential bargains or expecting a rebound. Additionally, it is important to note that analysts have revised their earnings downwards for the upcoming period, indicating potential headwinds for the company's financial performance.
For investors seeking a comprehensive analysis, InvestingPro offers additional tips on NCR Voyix Corp, which can be found at https://www.investing.com/pro/VYX. These tips provide valuable insights that could help in making informed investment decisions. Currently, there are 13 additional InvestingPro Tips available for NCR Voyix Corp, including perspectives on profitability, stock performance, and dividend policies.
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