Michael A. Henning, a director at Clarus Corp (NASDAQ:), recently sold a notable amount of the company’s common stock, according to a filing with the Securities and Exchange Commission. The transactions took place over two days, on November 13 and November 14, 2024.
On November 13, Henning sold 44,600 shares at an average price of $4.4595 per share, and on the following day, November 14, he sold an additional 7,091 shares at an average price of $4.4244 per share. The total value of these transactions amounted to $230,267.
Following these sales, Henning holds 103,309 shares of Clarus Corp, maintaining a significant position in the company. The transactions were executed directly by Henning, reflecting his ongoing management of his investment in the company.
In other recent news, Clarus Corporation reported its Q3 earnings, revealing strategic initiatives aimed at long-term growth and a focus on high-margin products despite a challenging market environment. The company’s Q3 revenue was $67.1 million, falling short of expectations, but gross margins saw a significant improvement. The Adventure segment experienced a slowdown, but the MAXTRAX brand stood out with a 16% sales growth.
Clarus Corporation ended Q3 with a robust cash position of over $36 million and no debt, setting the stage for potential cash flow positivity in Q4. The company has also revised its full-year sales guidance to between $260 million and $266 million, with an adjusted EBITDA anticipated between $7 million and $9 million.
Despite current market challenges, Clarus expects improvements in Q4 and Q1 of the following year. The company’s strategic shift to high-margin products is projected to yield gross margins between 39% and 40% in Q4. These are among the recent developments for Clarus Corporation, a company that remains committed to strategic growth and profitability.
InvestingPro Insights
In light of Director Michael A. Henning’s recent stock sales, it’s worth examining Clarus Corp’s (NASDAQ:CLAR) current financial position and market performance. According to InvestingPro data, Clarus has a market capitalization of $171.48 million, reflecting its current valuation in the market.
One of the InvestingPro Tips highlights that Clarus holds more cash than debt on its balance sheet, which could be seen as a positive indicator of the company’s financial health. This strong liquidity position is further supported by another tip stating that the company’s liquid assets exceed its short-term obligations.
However, investors should note that Clarus has not been profitable over the last twelve months, with an adjusted P/E ratio of -4.04 for the same period. This aligns with the company’s operating income margin of -9.28% and an EBITDA of -$5.39 million for the last twelve months as of Q3 2024.
Despite these challenges, there are some positive signals. InvestingPro Tips indicate that net income is expected to grow this year, and analysts predict the company will be profitable this year. This optimism is tempered by the fact that two analysts have revised their earnings downwards for the upcoming period.
The stock’s performance has been mixed, with a 6-month price total return of -35.45%, reflecting the “big hit” mentioned in one of the InvestingPro Tips. However, the 1-week and 3-month returns show slight gains of 1.59% and 0.45% respectively, suggesting a potential stabilization.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Clarus Corp, which could provide deeper insights into the company’s prospects and challenges.
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