Donald Lee Moak, director of Wheels Up Experience Inc. (NYSE:UP), recently sold a significant portion of his stake in the company. According to a filing with the Securities and Exchange Commission, Moak sold a total of 41,766 shares in two days.
On November 25, Moak sold 20,000 shares at a weighted average price of $2.50, for a total of $50,000. This transaction was conducted under a pre-arranged trading plan that complies with Rule 10b5-1. The next day, Moak sold an additional 21,766 shares at an average price of $2.47, for a total of $53,762.
Following these transactions, Moak retains ownership of 108,465 shares of Wheels Up.
In other recent news, Wheels Up Experience Inc. has obtained a $332 million revolving equipment credit facility, facilitated by Bank of America, for fleet expansion and refinancing. This move includes the acquisition of 17 Embraer Phenom 300 series aircraft from GrandView Aviation. The company reported stabilized revenue of $194 million and a significant decline in adjusted EBITDA loss to $20 million for the third quarter of 2024. Additionally, Wheels Up announced a strategic partnership with Delta Airlines (NYSE:) and a plan for fleet modernization.
The fleet transition, expected to be completed within three years, will involve a switch to Embraer Phenom 300 and Bombardier (OTC:) Challenger 300 series aircraft. Despite a 20% year-on-year decline in bookings private jet sales in the third quarter of 2024, the company maintains a 98% completion rate and 82% on-time performance. As part of recent developments, Wheels Up strives to achieve positive adjusted EBITDA by the full year 2025, supported by increased block sales and a strengthened management team. These updates reflect the company’s ongoing efforts to improve operational performance and customer experience.
InvestingPro Insights
Donald Lee Moak’s recent insider selling in Wheels Up Experience Inc. (NYSE:UP) comes at a time when the company’s stock has shown significant volatility and mixed performance. According to data from InvestingPro, UP has seen a strong 26.84% return over the past three months, with a notable 15.31% gain last week alone. This short-term upward trend could have influenced the director’s decision to sell a portion of his holdings.
However, investors should consider that Wheels Up faces some financial challenges. InvestingPro advice highlights that the company has not been profitable in the last twelve months, with a negative P/E ratio of -5.02. The company’s revenue has also declined significantly, with revenue growth of -41.09% over the trailing twelve months to Q3 2024. These factors may contribute to the high volatility of stock prices, another characteristic noted by InvestingPro.
Despite these challenges, it’s worth noting that InvestingPro’s fair value estimate for UP sits at $2.49, slightly above Moak’s recent selling prices. This suggests the stock could be reasonably valued at current levels, despite its recent volatility and financial performance issues.
For investors looking for a more comprehensive analysis, InvestingPro offers 10 additional tips for Wheels Up Experience Inc., which provide a deeper understanding of the company’s financial health and market position.
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