Esenjay Investments, LLC, a major shareholder in Flux Power Holdings, Inc. (NASDAQ:FLUX), recently sold a large amount of shares in the company. On 06/12/2024, Esenjay sold 134,623 shares at prices between $2.98 and $3.09, for a total transaction value of approximately $401,499.
The sale was disclosed in a regulatory filing with the Securities and Exchange Commission. Esenjay Investments has close ties to Michael Johnson, Esenjay’s sole director and beneficial owner. The shares sold were held directly by Esenjay Investments, according to the filing.
The transaction brings the total shares of Flux Power Holdings held directly and indirectly by Michael Johnson and Esenjay Investments to 4,187,934 shares. This is a partial sale by Esenjay Investments, which still holds a significant stake in the company.
Investors often monitor such insider transactions to get an idea of ​​what management thinks about the company’s future prospects. Insider selling can occur for a variety of reasons and is not necessarily due to a negative outlook for the company.
Flux Power Holdings, Inc., headquartered in Vista, California, is known in the diversified electrical machinery, equipment, and supplies industry. The company’s shares are publicly traded on the NASDAQ exchange and are subject to market fluctuations and investor scrutiny.
The SEC filing also includes proxy statements for both Michael Johnson and Esenjay Investments, LLC, indicating that Kevin Royal acted as their agent in the transaction. These details are part of the standard disclosures required to comply with federal securities laws.
Investors interested in learning more about the transaction and Michael Johnson and Esenjay Investments’ remaining holdings in Flux Power Holdings can consult the additional information contained in the SEC filing.
In other recent news, Flux Power Holdings reported lower revenue for the third quarter of fiscal 2024, falling to $14.5 million from $15.1 million in the prior year. The company’s net loss also widened to $2.6 million, up from a loss of $1.4 million in the prior year. Despite these challenges, Flux Power remains committed to strategies aimed at driving revenue growth and reducing costs.
The company has experienced delays in new orders due to rescheduled forklift delivery schedules and the broader impact of rising interest rates and economic uncertainty. However, Flux Power is expanding its product lineup to include second-generation lithium-ion battery packs and is also exploring expansion into adjacent markets such as military and medical batteries.
Analysts noted that the company’s outstanding order backlog decreased to $18.5 million from $25 million a year ago. Despite these setbacks, Flux Power remains confident in its recovery and plans to support its sales trajectory and growth through additional sales initiatives. These recent developments reflect Flux Power’s ongoing efforts to lay the foundation for future growth while weathering market headwinds.
InvestingPro Insights
Following recent insider transactions at Flux Power Holdings, Inc. (NASDAQ:FLUX), the market is keeping a close eye on the company’s performance and financial position. According to InvestingPro data, Flux Power Holdings’ current market capitalization is $54.22 million. Although the company has seen a significant gain over the past week, up 18.93%, it is still trading at a high price-to-book ratio of 11.4x. This could indicate that the market’s valuation of the company’s net assets is significantly higher than its accounting value, which could be of interest to investors.
From a profitability perspective, Flux Power has not been profitable in the past 12 months, and analysts do not expect the company to be profitable this year. This is reflected in a negative P/E ratio of -7.71, which has adjusted slightly over the past 12 months to -8.77 as of Q3 2024. Additionally, the company operates with moderate debt, which may be a consideration for risk-averse investors.
For those wanting to learn more about Flux Power Holdings’ financial position and future prospects, InvestingPro has more tips for you. These insights include analysis on earnings revisions, price movement, and dividend policy. Currently, three analysts have revised down their earnings forecasts for the coming period, and the stock is known for its high price volatility. It should also be noted that Flux Power does not pay dividends to shareholders.
To see a comprehensive look at InvestingPro’s tips for Flux Power Holdings, visit Investing.com/pro/FLUX. Plus, get coupon code ProNews 24New subscribers can enjoy an additional 10% discount on annual or biennial Pro and Pro+ subscriptions and gain additional valuable insights into a company’s financial performance and market position.
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