Fairfax, Virginia - In a recent transaction on September 23, Philip N. Garfinkle, a board member of WidePoint Corporation (NYSE AMERICAN:WYY), acquired 1,000 shares of the company's common stock, investing a total of approximately $3,280.
The purchase, detailed in a filing with the Securities and Exchange Commission, was executed at a price of $3.28 per share. Following the transaction, Garfinkle's direct ownership in WidePoint Corp has increased to 155,631 shares.
WidePoint Corporation, headquartered in Fairfax, Virginia, specializes in computer integrated systems design and operates under the technology sector. The company, formerly known as ZMAX Corp, has been incorporated in Delaware and is known for providing trusted mobility management solutions.
Investors often monitor insider buying as it can be a signal of confidence in the company's future prospects. Transactions by executives and directors of a company are closely watched for insights into potential corporate performance.
This latest acquisition by a WidePoint director may be of interest to current and prospective shareholders as they assess the company's stock performance and insider sentiment.
In other recent news, WidePoint Corporation has announced a notable 35% revenue increase in the second quarter of 2024, reaching a high of $36 million. This growth is accompanied by the company's 28th consecutive quarter of positive adjusted EBITDA. Significant contract wins, including the $2.7 billion Spiral 4 contract and a $254 million addition to the CWMS 2.0 contract, have contributed to a strong sales pipeline for the company.
WidePoint is also actively exploring opportunities in the commercial sector, such as the K-12 market, and anticipates achieving FedRAMP authorization by the end of 2024. Despite challenges like increased Days Sales Outstanding (DSOs) and $25.8 million in unbilled receivables, the company's backlog stands at $320 million, with expectations of significant revenue conversion in the next two years.
The company's focus on technological advancements to meet client needs and secure new contracts has led to an optimistic financial outlook for the remainder of the year. Key developments include the introduction of the MobileAnchor technology, which is garnering federal agency interest. These recent developments highlight WidePoint's growth trajectory in the managed mobility services market.
InvestingPro Insights
As investors consider the implications of insider buying at WidePoint Corporation (NYSE AMERICAN:WYY), current real-time data and analysis from InvestingPro provide a deeper understanding of the company's financial health and market position.
InvestingPro Data highlights that WidePoint Corporation boasts a market capitalization of $30.09 million, indicating its size within the technology sector. The company's revenue growth is notably robust, with a 23.44% increase over the last twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 34.67% in Q2 2024. Despite these positive growth figures, the company's gross profit margin stands at 14.07%, reflecting potential efficiency challenges in converting sales into actual profit.
InvestingPro Tips reveal that WidePoint Corporation has experienced a high return over the last year, with an 85.96% price total return, which may attract investors looking for growth stocks. However, it's also important to note that the stock price movements have been quite volatile, and the company is not profitable over the last twelve months. This lack of profitability is further emphasized by a negative P/E ratio of -8.83, which can be a concern for value-focused investors.
Moreover, the company's stock is trading at a low revenue valuation multiple, which could suggest that the market has undervalued WidePoint's revenue potential. This perspective might be particularly relevant for investors considering the recent insider purchase as a sign of undervaluation.
For those interested in a more comprehensive analysis, InvestingPro provides additional tips on WidePoint Corporation's financial metrics and stock performance. There are a total of 9 InvestingPro Tips available at https://www.investing.com/pro/WYY, which can offer investors further insights into whether the company aligns with their investment strategy.
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