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Local Bounti Corporation (NYSE:LOCL) director Mark Joseph Nelson has sold a portion of his holdings in the company, according to a recent SEC filing. The transaction, which took place on March 13, 2024, involved the sale of 447 ordinary shares at a weighted average price of $2.5937 per share, for a total of over $1,150.
The sale was conducted under a pre-established trading schedule, known as Rule 10b5-1, which allows company insiders to sell shares at set times to avoid accusations of trading based on non-public information. This plan was adopted by Nelson on November 14, 2023.
Investors may notice that the shares were sold in multiple trades, with prices ranging from $2.54 to $2.60. The average price reported reflects the weighted average of these sales. Following the transaction, Nelson still holds 31,048 shares of Local Bounti Corporation stock, indicating a continued vested interest in the company’s success.
Local Bounti Corporation, a publicly traded Agricultural Production – Crops industry, is incorporated in Delaware and operates in Hamilton, MT. The company’s business involves innovative approaches to agricultural production, which has attracted investor interest in the agricultural technology space.
For those who closely monitor insider activity, details of the exact number of shares sold at each price point can be provided upon request to the SEC, the issuer, or the issuer’s security holder. This level of transparency is often appreciated by shareholders and potential investors who want to understand the context of insider transactions.
The document was signed by Kathleen Valiasek, as attorney for Mark J. Nelson, on March 15, 2024.
Insights on InvestingPro
Following director Mark Joseph Nelson’s recent insider sale of Local Bounti Corporation (NYSE:LOCL), investors may be interested in the company’s financial health and market performance. Over the trailing twelve months leading up to the third quarter of 2023, Local Bounti’s market capitalization stands at a modest $21.26 million, reflecting a niche position in the Agricultural Production – Crops sector.
Despite the company’s innovative approaches to agricultural production, Local Bounti is grappling with financial challenges. The company’s revenue growth has been substantial at 107.83% over the past twelve months, which could indicate potential for future expansion. However, the concern stems from the company’s gross profit margin, which is relatively low at 5.15%. This suggests that as sales grow, the cost of goods sold may be disproportionately high, impacting overall profitability. This is further highlighted by the company’s negative operating income margin of -279.75%, indicating operational inefficiencies.
InvestingPro’s recommendations for local Bounti highlight several critical points for investors to consider. The company faces a significant debt burden, raising concerns about its ability to meet interest payments. Furthermore, analysts do not expect Local Bounti to be profitable this year, which is underlined by a negative P/E ratio of -0.23. However, it is worth noting that the stock has seen a strong return over the past month, with a 12.76% increase in total price return. This recent rally could be a signal to some investors of a potential trend reversal or simply a short-term fluctuation in an otherwise volatile stock price history.
For those interested in more in-depth analysis, InvestingPro provides more detailed insights and recommendations. There are 14 additional InvestingPro tips, which can provide further guidance on aligning Local Bounti Corporation with your investment strategy. To explore these insights, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% discount on the annual or biennial Pro and Pro+ subscription.
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