Charlie Bass, a director and significant shareholder of Socket Mobile, Inc. (NASDAQ:SCKT), recently acquired 10,000 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The purchases were made on October 31 and November 1, at prices ranging from $1.1054 to $1.1213 per share, totaling approximately $11,133.
Following these transactions, Bass holds a direct ownership of 1,496,651 shares in the company. These acquisitions reflect his continued investment and confidence in the Fremont, California-based electronic computer company.
In other recent news, Socket Mobile has reported mixed results for its Q3 2024 earnings. Despite facing market challenges, the company saw a 21% increase in revenue to $3.9 million compared to the same period last year. However, the quarter was marked by an operating loss of $1 million and an EBITDA-negative of approximately $500,000.
The company experienced an uneven distribution of bookings throughout the quarter, leading to a significant backlog entering Q4. Despite these challenges, Socket Mobile received positive feedback for its industrial products, which are currently under evaluation by large organizations.
The company also raised $1 million from insiders to ensure working capital for larger customer projects and released an updated version of CaptureSDK with full support for iOS 18. Looking forward, Socket Mobile anticipates profitability in 2025 due to investments in industrial and camera spaces. These developments are part of the company's transition into a more comprehensive hardware and software data capture entity.
InvestingPro Insights
Charlie Bass's recent acquisition of Socket Mobile shares comes at a time when the company's financial metrics paint a complex picture. According to InvestingPro data, Socket Mobile's stock is currently trading at a low Price / Book multiple of 0.47, suggesting the market may be undervaluing the company's assets. This could align with Bass's decision to increase his stake, potentially seeing value that the market has yet to recognize.
However, investors should note that Socket Mobile faces some financial challenges. An InvestingPro Tip indicates that the company is quickly burning through cash, which could be a concern for long-term sustainability. Additionally, the company's valuation implies a poor free cash flow yield, and it has not been profitable over the last twelve months, with a negative P/E ratio of -6.22.
Despite these challenges, Socket Mobile has shown some positive signs. The company's revenue grew by 20.78% in the most recent quarter, and its EBITDA growth stands at 25.28% over the last twelve months. These growth figures might suggest potential for future improvement, which could be part of Bass's investment thesis.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Socket Mobile, providing a deeper understanding of the company's financial health and market position. These insights could be valuable for those considering following Bass's lead or evaluating their current holdings in SCKT.
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