Alclear Investments II Executive Sells $4.96 Million in Clear Secure Stock

An executive at Alclear Investments II, LLC, which could be viewed as a director by deputization of Clear Secure, Inc., has sold a substantial quantity of shares in the company. On September 18, 2024, Alclear Investments II disposed of 150,000 shares of Class A Common Stock at a weighted average price of $33.04 per share, amounting to around $4.96 million. The sales occurred through multiple transactions, with prices ranging from $33.00 to $33.12.

This sale was executed automatically under a Rule 10b5-1 trading plan that was established on March 12, 2024, indicating that the plan was set up well before the selling date. This is a standard practice that enables insiders to sell shares at predetermined times, thereby minimizing the risk of accusations related to trading on undisclosed information.

In addition, Alclear Investments II participated in several non-monetary transactions that involved converting and exchanging different classes of stock. According to the notes in the SEC filing, each Class B Common Stock share was converted into a share of Class A Common Stock on a one-for-one basis, and these newly converted shares were utilized to fulfill the sale transaction mentioned earlier. Following these transactions, Alclear Investments II no longer holds any shares of Class A Common Stock.

Moreover, there were exchanges of Common Units and Class D Common Stock for Class B Common Stock in accordance with the Exchange Agreement dated June 29, 2021. Class D Common Stock carries 20 votes per share but holds no economic rights, and it is issued in the same amount as the Common Units held in Alclear Holdings, LLC. The exchanged Class B Common Stock is endowed with economic rights as well as 20 votes per share.

The SEC filing notes that due to his relationship with Mr. Kenneth Cornick, the sole manager and an equityholder of Alclear Investments II, LLC, the reporting individual may be regarded as a director by deputization of Clear Secure, Inc.

Insider transactions often attract investor attention, as they can provide insights into executives’ confidence in the company’s future performance. The sale of shares by an entity potentially linked to a director might raise interest in the market; however, it does not necessarily signify a loss of confidence in the company’s future.

In other recent developments, Clear Secure, Inc. reported a strong second fiscal quarter for 2024, citing a 25% increase in revenues and a 137% rise in adjusted EBITDA. The company welcomed a record 2.3 million new members during this period, contributing to significant growth in its CLEAR Travel and CLEAR Verified services. Additionally, it raised its free cash flow growth guidance for the fiscal year to no less than 40%.

In terms of staff changes, Clear Secure announced that Kasra Moshkani, the Executive Vice President of Verified, will be leaving the company. His role has been vital to the company’s operations, and efforts are currently underway to find a successor.

The company also mentioned its recent acquisition of Sora, which is expected to enhance partner services positively. Furthermore, Clear Secure unveiled an airport innovation initiative and launched new technology enhancements and CLEAR Perks for CLEAR Plus members. The firm anticipates significant growth in various sectors, including healthcare and financial services, and aims to reach 50 million members by 2025.

Overall, while the insider sale may capture attention, the company’s solid financial performance and positive outlook from analysts suggest that investors may still find Clear Secure to be an attractive option.