AudioEye CEO David Moradi sells $3.77 million in shares

David Moradi, the CEO of AudioEye Inc. (NASDAQ:), has sold a significant portion of his holdings in the company, according to a recent SEC filing. On November 12, 13, and 14, Moradi sold a total of 124,743 shares of AudioEye common stock, amounting to approximately $3.77 million. The shares were sold through Sero Capital LLC, with prices ranging from $25.72 to $32.68 per share.

Following these transactions, Moradi retains a substantial stake in the company, holding 2,764,501 shares indirectly through Sero Capital LLC. These transactions reflect Moradi's ongoing management of his investment in AudioEye, a company known for its accessibility solutions in digital content.

"In other recent news, AudioEye has shown robust financial growth with record revenue of $8.9 million in the third quarter of 2024, aligning with forecasts. The company has also provided a positive forecast for the fourth quarter of 2024, anticipating revenues to be in the range of $9.7 million to $9.8 million, indicating a 23.9% growth compared to the same period the previous year. H.C. Wainwright has maintained a Buy rating on AudioEye and increased the price target to $37.00 from $28.00. Analysts have noted AudioEye's high gross margin of approximately 80% and predict adjusted EBITDA margins nearing 25% in 2025. The company's strategic partnerships and recent acquisition of ADA Site Compliance are anticipated to significantly boost revenue growth. AudioEye has also fortified its balance sheet through its At-the-Market offering program, providing flexibility for potential mergers and acquisitions. These recent developments suggest a promising outlook for AudioEye's financial health and future prospects."

InvestingPro Insights

While David Moradi's recent stock sale might raise eyebrows, a closer look at AudioEye's financial metrics and market performance reveals a more nuanced picture. According to InvestingPro data, AudioEye's stock has shown remarkable strength, with a 497.26% price total return over the past year and an impressive 382.66% year-to-date return. This robust performance aligns with an InvestingPro Tip indicating a "high return over the last year."

Despite the CEO's stock sale, there are positive signals for AudioEye's future. An InvestingPro Tip suggests that "net income is expected to grow this year," and analysts predict the company will be profitable this year. This optimism is further supported by the fact that two analysts have revised their earnings upwards for the upcoming period.

AudioEye's financial health appears solid, with the company operating with a moderate level of debt and boasting impressive gross profit margins of 78.87% for the last twelve months as of Q3 2023. This strong profitability metric is particularly noteworthy in the tech sector.

For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for AudioEye, providing a deeper understanding of the company's financial position and market outlook.

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