In recent transactions disclosed by SK Inc., a significant shareholder of SES AI Corp (NASDAQ:NYSE:SES), the company sold a total of 452,982 shares of SES AI Corp's Class A Common Stock. The sales occurred over two days, October 28 and October 29, 2024, with prices ranging from $0.57 to $0.58 per share. The total value of these transactions amounted to $260,376.
Following these sales, SK Inc. retains ownership of 35,870,328 shares in SES AI Corp. The transactions were executed with direct ownership, and SK Inc. remains a ten percent owner of SES AI Corp.
In other recent news, SES AI Corporation has released its Q2 financial results, highlighting its commitment to the development of next-generation battery technologies. The company reported operating expenses of $24.6 million, cash used in operations of $22.1 million, and capital expenditures of $3.7 million, ending the quarter with a strong liquidity position of $294.7 million. SES AI also updated its cash usage guidance for 2024, reflecting confidence in its financial standing.
In the earnings call, SES AI detailed its licensing strategy for AI solutions, with an initial free phase followed by paid licensing. The company's AI will provide proactive recommendations for manufacturing and reactive monitoring for safety. The company is also progressing with its strategic joint development agreements (JDAs) with automotive partners Honda (NYSE:HMC) and Hyundai (OTC:HYMTF), aiming to advance its battery technology.
Deutsche Bank (ETR:DBKGn) recently resumed coverage on SES AI with a Hold rating and set a price target of $1.50, highlighting these developments. The company is on track to deliver B-sample batteries for both partners, a crucial phase as it moves towards the mid-2025 C-sample timeline. These are among the recent developments in SES AI's journey to integrate artificial intelligence into battery technology for the electric vehicle and urban air mobility sectors.
InvestingPro Insights
The recent share sales by SK Inc. come at a time when SES AI Corp (NASDAQ:SES) is facing significant market challenges. According to InvestingPro data, SES's stock price has taken a substantial hit, with a 52.38% decline over the past three months and a staggering 69.46% drop over the last year. The company's current share price of $0.56 is just 20.16% of its 52-week high, indicating a steep downward trend.
InvestingPro Tips reveal that SES is quickly burning through cash and is not expected to be profitable this year. This aligns with the reported operating income of -$83.17 million for the last twelve months as of Q2 2024. The company's financial health is further strained by weak gross profit margins and a valuation that implies a poor free cash flow yield.
Despite these challenges, it's worth noting that SES holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial cushion may provide some stability as the company navigates its current difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for SES AI Corp, providing a deeper understanding of the company's financial position and market performance.
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