Revealing a significant insider sell on May 16, Kenneth Cornick, Director at Clear Secure YOU, as per the latest SEC filing.
What Happened: Cornick’s decision to sell 109,409 shares of Clear Secure was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $2,760,389.
At Friday morning, Clear Secure shares are down by 1.99%, trading at $24.15.
Unveiling the Story Behind Clear Secure
Clear Secure Inc is an identity company making experiences safer and easier digitally and physically. It is involved in the creation of a frictionless travel experience while enhancing security. Its secure identity platform uses biometrics to automate the identity verification process through lanes in airports which helps to make the travel experience safe and easy.
Clear Secure: Financial Performance Dissected
Revenue Growth: Over the 3 months period, Clear Secure showcased positive performance, achieving a revenue growth rate of 18.05% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Evaluating Earnings Performance:
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Gross Margin: The company shows a low gross margin of 62.01%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Clear Secure’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.26.
Debt Management: Clear Secure’s debt-to-equity ratio surpasses industry norms, standing at 1.02. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Financial Valuation:
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Price to Earnings (P/E) Ratio: Clear Secure’s P/E ratio of 15.21 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The current P/S ratio of 4.47 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 11.47, Clear Secure’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
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Unmasking the Significance of Insider Transactions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
The Insider’s Guide to Important Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Clear Secure’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
