Soho House & Co Inc. (NYSE:SHCO) Chief Financial Officer Thomas Allen Glassbrooke has recently sold a significant amount of company stock, according to the latest filings. The transactions, which took place over multiple days, resulted in the sale of Soho House shares worth over $130,000.
On September 3, Glassbrooke sold 21,461 shares at a price of $5.7362, followed by a sale of 1,271 shares on September 4 at a price of $5.4995. These sales were not discretionary, as they were automatically executed to satisfy tax obligations triggered by the vesting of previously granted restricted stock units (RSUs). The remaining vested shares continue to be held by Glassbrooke.
The RSUs, which were granted with the contingent right to receive shares of Class A common stock, vest in three equal annual installments. The vesting is contingent on the executive’s continued employment through the anniversaries of the August 31, 2022 grant date.
Investors following Soho House & Co Inc. should note that the CFO’s recent stock transactions have resulted in a reduction of his direct ownership in the company’s shares. Following the sales, Glassbrooke’s ownership in the company stands at 118,261 shares of Class A common stock.
These transactions provide insight into the trading activity of Soho House’s executives and may be of interest to current and potential investors. The company, known for its hospitality and real estate ventures, operates under the Soho House brand and is incorporated in Delaware.
In other recent news, Soho House & Co reported a wider-than-expected Q2 loss of $33.9 million or $0.17 per share, surpassing analyst expectations of a $0.11 per share loss. However, the company’s revenue exceeded estimates, reaching $305.1 million, a 5.6% increase year-over-year, and slightly above the consensus estimate of $302.85 million. Membership growth remained robust, seeing a 6.6% increase YoY to 264,540, with Soho House members specifically growing 16% YoY to 204,028. These recent developments also include a 16.1% rise in membership revenues to $103.6 million, which made up 33.9% of total revenues.
On the other hand, Morgan Stanley resumed coverage on Soho House & Co stock, assigning an Equalweight rating and setting a price target of $5.50. The firm highlighted the company’s financial and operational leverage as significant factors influencing the risk-reward balance for the share price. The firm’s projections for Soho House’s EBITDA fall below the consensus for the years 2024 and 2025, suggesting a cautious stance on the company’s fundamentals due to its high lease-adjusted debt and general and administrative expenses.
InvestingPro Insights
As Soho House & Co Inc. (NYSE:SHCO) navigates the market, recent data from InvestingPro provides a snapshot of the company’s financial health and investor sentiment. With a market capitalization of $1.07 billion and a notable gross profit margin of 61.85% over the last twelve months as of Q2 2024, Soho House demonstrates a strong ability to generate revenue relative to its costs. Despite this, the company’s short-term challenges are evident, as reflected by a recent 12.95% decline in stock price over the last week and a negative P/E ratio of -5.91, suggesting investor concerns about profitability.
InvestingPro Tips highlight that Soho House’s short-term obligations currently exceed its liquid assets, which may raise liquidity concerns for the company. Furthermore, analysts do not anticipate Soho House will be profitable this year, aligning with the company’s lack of profitability over the last twelve months. Nonetheless, the company has experienced a strong return over the last month, with an 18.75% increase in stock price, indicating some positive investor sentiment amidst the volatility.
For those considering an investment in Soho House, it’s worth noting that the company does not pay a dividend, which may influence the decision-making of income-focused investors. Additionally, Soho House is trading at a high EBITDA valuation multiple, which could suggest that the stock is priced optimistically relative to its earnings before interest, taxes, depreciation, and amortization.
Investors interested in more detailed analysis and additional insights can find a total of 7 InvestingPro Tips by visiting https://www.investing.com/pro/SHCO, providing a more comprehensive view of Soho House & Co Inc.’s financial and market performance.
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