Philip N. Garfinkle, a director at WidePoint Corporation (AMEX:WYY), has recently increased his stake in the company by purchasing additional shares. On April 5, 2024, Garfinkle acquired 1,100 shares of WidePoint's common stock at an average price of $2.15 per share, totaling $2,365.
The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission. According to the disclosure, the shares were bought in multiple transactions at prices ranging from $2.15 to $2.20. Following the purchase, Garfinkle now directly owns 124,665 shares in the company.
WidePoint Corporation, based in Fairfax, Virginia, specializes in computer integrated systems design and operates within the technology sector. The company's stock is publicly traded under the ticker symbol WYY on the American Stock Exchange.
The recent acquisition by Director Garfinkle reflects a vote of confidence in the company's prospects and adds to his already significant ownership in WidePoint. Investors often look to insider transactions such as this to gauge sentiment within the company's leadership regarding its performance and future outlook.
For those interested in the specifics of the transaction, Garfinkle has agreed to provide full information regarding the number of shares purchased at each separate price within the reported range upon request by WidePoint Corporation, any security holder of the company, or the SEC staff.
InvestingPro Insights
Following the recent insider purchase by Philip N. Garfinkle, WidePoint Corporation (AMEX:WYY) investors may be curious about the company's financial health and market performance. With a market capitalization of $19.25 million USD, WidePoint appears to be a smaller player in the technology sector. Despite this, the company holds more cash than debt on its balance sheet, which could provide some financial flexibility.
One of the notable InvestingPro Tips for WidePoint is that the stock has experienced a significant drop over the last week, with a price total return of -8.95%. However, it's worth noting that there has been a large price uptick over the last six months, with a total return of 37.65%. This volatility could suggest that the stock is responding to market dynamics or internal developments.
From a valuation standpoint, WidePoint is trading at a low revenue valuation multiple, with a price-to-book ratio in the last twelve months as of Q4 2023 at 1.28. This could indicate that the stock is undervalued relative to its assets. Additionally, the company's revenue growth is robust, with a quarterly increase of 21.07% in Q1 2023.
Investors should note that WidePoint is not profitable over the last twelve months, with a negative P/E ratio of -5.09. Moreover, the company suffers from weak gross profit margins, standing at 14.76% in the same period. This could be a concern for those looking for immediate profitability and strong margins.
For those interested in a deeper dive into WidePoint Corporation's financials and to access additional InvestingPro Tips, visit https://www.investing.com/pro/WYY. There are 6 more tips available, which could provide further insights into the company's performance and potential investment opportunities. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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