Clear Secure President & CFO Sells $4.96M in Stock

Kenneth L. Cornick, President and CFO of Clear Secure, Inc., has recently sold a substantial amount of stock in the company. On September 18, 2024, Cornick disposed of 150,000 shares of Class A Common Stock at a weighted average price between $33.00 and $33.12, totaling approximately $4.96 million.

This transaction was carried out under a pre-arranged Rule 10b5-1 trading plan, which enables company insiders to schedule stock transactions in advance while ensuring they do not possess any material non-public information. This rule is in place to mitigate any potential accusations of insider trading.

Following this sale, Cornick no longer retains any shares of Class A Common Stock. The details of the transaction were reported in a Form 4 filing with the Securities and Exchange Commission (SEC), promoting transparency in insider trading activities.

Clear Secure, based in New York, operates within the prepackaged software industry and is recognized for its advanced technology solutions, particularly in identity verification and security.

In addition to the Class A shares, Cornick also handled transactions involving Class B and Class D Common Stock, which carry different voting and economic rights. The Class B shares were converted to Class A shares on a one-for-one basis and used to facilitate the recent sale. Cornick maintains significant ownership through Alclear Investments II, LLC, where he has control over voting and investment decisions.

Insider transactions are often closely watched by investors, as they can reveal executives’ sentiments regarding the company’s current valuation and future potential. However, it is important to remember that such transactions do not necessarily indicate shifts in the company’s fundamentals and may be driven by personal or financial reasons.

The SEC filing includes detailed explanations of the transactions and the relationships between various stock classes, which are essential for investors wanting to grasp the implications of these trades.

Currently, there has been no statement from Clear Secure, Inc. or Kenneth L. Cornick about the motivations behind the sale or future stock transactions.

In related news, Clear Secure recently announced strong financial results for the second quarter of 2024 alongside the impending departure of an executive. The company reported a 25% revenue increase and a 137% boost in adjusted EBITDA, while operations and free cash flow rose by 65% and 90%, respectively. Clear Secure also welcomed a record 2.3 million new members during this period, enhancing the growth of its CLEAR Travel and CLEAR Verified services.

Regarding personnel changes, the company revealed that Executive Vice President Kasra Moshkani will be leaving to explore other opportunities, and a search for a replacement is already underway.

Clear Secure has also introduced new technological advancements, including CLEAR Perks for CLEAR Plus members, and is launching an airport innovation campaign. The company is optimistic about the growth potential of TSA PreCheck and a recent acquisition, both of which are expected to positively impact gross profit. Clear Secure aims to reach a target of 50 million members by 2025, emphasizing its commitment to expansion and enhancing customer experience.

Overall, these developments reflect Clear Secure’s dynamic position in the market, with a focus on growth and innovation.