LivePerson EVP sells over $38k in company stock

Monica L. Greenberg, the Executive Vice President and General Counsel of LivePerson Inc. (NASDAQ:LPSN), has sold 34,441 shares of the company’s common stock on August 12, 2024. The shares were sold at a price of $1.12, totaling over $38,573.

The transaction was disclosed in a recent filing with the Securities and Exchange Commission. According to the filing, the sale was automated to cover tax liabilities related to the vesting of Greenberg’s restricted stock units. Following the transaction, Greenberg still owns a total of 181,607 shares in the company, which includes 72,473 unvested restricted stock units.

LivePerson Inc., known for its cloud-based messaging solutions, enables businesses to engage with customers through their preferred messaging platforms. The transaction comes at a time when the company continues to expand its offerings in the customer engagement space.

Investors often monitor insider sales as they may provide insights into an executive’s view of the company’s current valuation and future prospects. However, it is important to note that such transactions can be influenced by a variety of factors, including personal financial management and tax planning.

The company’s stock is publicly traded on the NASDAQ under the ticker symbol LPSN. LivePerson has not issued any official statement regarding the transaction, and it remains a routine disclosure as part of the company’s financial reporting obligations.

In other recent news, LivePerson Inc. reported its Q2 2024 earnings, revealing a mixed financial performance. The company posted a revenue of $79.9 million, aligning with the higher end of their guidance. However, there was a year-over-year decline in B2B hosted services revenue by 17% and core recurring revenue by 18%. The adjusted EBITDA exceeded expectations at $8.2 million, largely due to cost reductions.

LivePerson also announced a strategic deal with Lynrock Lake to address 2026 convertible notes and the successful launch of new pricing ahead of schedule. The company’s CFO, John Collins, mentioned the divestiture of Wild Health, resulting in savings of $3 to $5 million in expenses, and plans to raise new capital to reduce debt and strengthen the balance sheet. Despite anticipating a sequential revenue decline throughout the year, LivePerson ended the quarter with $146 million in cash and expects improvements in new annual recurring revenue. These are among the recent developments for the company.

InvestingPro Insights

LivePerson Inc. (NASDAQ:LPSN) has been navigating a challenging financial landscape, as reflected in recent metrics and insights from InvestingPro. With a market capitalization of $121.96 million, the company’s financial health raises some concerns. According to InvestingPro Tips, LivePerson operates with a significant debt burden and may have trouble making interest payments on its debt. These factors are critical for investors to consider, as they may impact the company’s long-term viability and stock performance.

The company’s recent performance shows a significant return over the last week, with a 15.25% increase in price total return. This short-term gain contrasts with the broader trend over the last year, where the company has experienced a substantial 71.67% decline in its year-to-date price total return. This volatility is a point of interest for investors, as highlighted by an InvestingPro Tip that notes the stock generally trades with high price volatility.

From a profitability standpoint, LivePerson has not been profitable over the last twelve months, and analysts do not anticipate the company will be profitable this year. The company’s revenue has also declined by 20.86% over the last twelve months as of Q2 2024. These financial challenges are reflected in the P/E ratio of -1.31, indicating that the company is not generating profit relative to each share’s price.

For those considering an investment in LivePerson, it is worth noting that there are 17 additional InvestingPro Tips available that could provide further insights into the company’s performance and potential. The full set of tips is accessible through the InvestingPro platform at: https://www.investing.com/pro/LPSN.

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