Disclosed on May 16, Alclear Investments II LLC, Board Member at Clear Secure YOU, executed a substantial insider sell as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Friday showed that LLC sold 109,409 shares of Clear Secure. The total transaction amounted to $2,760,389.
Tracking the Friday’s morning session, Clear Secure shares are trading at $24.15, showing a down of 1.99%.
All You Need to Know About 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: Delving into Financials
Revenue Growth: Clear Secure displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 18.05%. This indicates a notable increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Profitability Metrics:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 62.01%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Clear Secure exhibits below-average bottom-line performance with a current EPS of 0.26.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.02, caution is advised due to increased financial risk.
Financial Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 15.21 is lower than the industry average, implying a discounted valuation for Clear Secure’s stock.
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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): With a lower-than-industry-average EV/EBITDA ratio of 11.47, Clear Secure presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.
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Unmasking the Significance of Insider Transactions
Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Unlocking the Meaning of Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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.
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