James J. Lerner, President and CEO of Quantum Corp (NASDAQ:QMCO), recently executed a sale of company stock, according to a recent SEC filing. Lerner sold a total of 2,511 shares of Quantum Corp's common stock on January 16, 2025, at a price of $35.68 per share, amounting to a total transaction value of $89,592. The transaction comes amid significant stock momentum, with QMCO shares showing a remarkable 323% gain over the past six months, according to InvestingPro data.
The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units granted on January 1, 2024. InvestingPro analysis indicates the company currently operates with a significant debt burden and weak financial health metrics. Following this transaction, Lerner holds 107,804 shares of Quantum Corp directly. Discover 12 additional key insights about QMCO with an InvestingPro subscription.
In other recent news, Quantum Corporation has been at the center of numerous developments. The company experienced a significant surge in its stock following the announcement of a new parallel file system client for its Quantum Myriad all-flash file system, aimed at enhancing NVIDIA (NASDAQ:NVDA) GPUDirect Storage® capabilities. This development is expected to improve AI/ML infrastructure, offering organizations a highly parallel file system client that can be deployed on-the-fly and is compatible across platforms.
However, the quantum computing sector, including Quantum Corporation, faced a significant sell-off due to valuation concerns. Citron Research, an activist short seller, targeted Quantum Corporation, highlighting disparities in R&D spending among small-cap quantum companies, which raised doubts about the sustainability of the current valuations.
In parallel, Quantum Corporation announced the general availability of the Scalar i7 RAPTOR, a new high-density tape storage system designed to meet the expanding needs of AI and cloud storage. This system offers a storage density claimed to be up to 200% higher than traditional enterprise tape libraries and is now available for purchase.
Moreover, Quantum Corporation reported mixed Q2 results with a 7% decrease in year-over-year revenue, totaling $70.5 million, and adjusted the FY 2025 revenue outlook to $280 million. Analyst projections estimate an adjusted net loss per share for Q3 at negative $0.75, with expected Q3 revenue at approximately $72 million. Despite these projections, Quantum Corporation remains optimistic about achieving positive cash flow in the latter half of FY 2025 and FY 2026. These are the recent developments for Quantum Corporation.
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