Insider Trading January 27, 2026

MDB Capital CFO Sells $11.6K in Shares to Cover Tax Withholding

Two sell-to-cover transactions by CFO James Jeremy William completed in late January; company trading near fair value with low valuation multiples

By Nina Shah MDBH
MDB Capital CFO Sells $11.6K in Shares to Cover Tax Withholding
MDBH

MDB Capital Holdings, LLC (NASDAQ: MDBH) reported two insider sales by Chief Financial Officer James Jeremy William on January 23 and January 26, 2026. The transactions, executed as sell-to-cover trades to satisfy tax withholding obligations from restricted stock vesting, totaled $11,621 and reduced William's direct stake to 19,839 shares. The company is trading at $3.34 with a market capitalization of $33.96 million and shows low valuation multiples alongside signs of rapid cash consumption, according to InvestingPro data.

Key Points

  • CFO James Jeremy William sold a total of $11,621 in MDB Capital Holdings stock across two sell-to-cover transactions on January 23 and January 26, 2026.
  • Post-transaction, William directly holds 19,839 shares; the sales were executed to meet mandatory tax withholding obligations arising from the vesting of restricted stock grants.
  • MDB Capital trades at $3.34 with a market capitalization of $33.96 million, displaying low valuation multiples (P/E 4.8, P/B 0.57) while InvestingPro notes rapid cash burn and a 47.4% share price decline over the past year.

Insider sales recorded

Chief Financial Officer James Jeremy William of MDB Capital Holdings, LLC (NASDAQ: MDBH) completed two sales of the company’s common stock that were disclosed on a Form 4 filed with the U.S. Securities and Exchange Commission. The transactions took place on January 23, 2026, and January 26, 2026, and together amount to $11,621 in proceeds.

Transaction details

On January 23, William sold 60 shares of MDB Capital Holdings at prices that ranged from $3.32 to $3.39 per share, producing total proceeds of $200.40. Three days later, on January 26, he sold 3,440 shares at prices between $3.30 and $3.34, generating $11,420.80. Following these sell orders, William directly owns 19,839 shares of the company’s common stock.

Purpose of the sales

The Form 4 filing specifies that both transactions were executed as "sell to cover" trades. The reported purpose of those sales is to satisfy mandatory, non-discretionary tax withholding obligations tied to the vesting of restricted stock grants.

Market context and valuation metrics

As of the most recent market data cited, MDB Capital is trading at $3.34 per share and carries a market capitalization of $33.96 million. InvestingPro analysis referenced in the filing indicates the stock has declined 47.4% over the last 12 months. The company is described as trading near its Fair Value and displays a low price-to-earnings ratio of 4.8 and a price-to-book ratio of 0.57.

Operational and financial snapshot

InvestingPro notes that MDB Capital is "quickly burning through cash," a condition highlighted alongside the low earnings multiple. The company’s recently reported third-quarter 2025 results show an earnings per share figure of -0.46 USD and revenue of 1.25 million USD for the quarter.

Corporate governance updates

MDB Capital also concluded its 2025 Annual Meeting of Stockholders. At that meeting shareholders elected seven directors to serve until the 2026 annual meeting and ratified the appointment of RBSM LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The meeting reported participation representing 84.90% of the votes entitled to be cast, either in person or by proxy.


What this means

The filing attributes the insider sales to tax-related obligations tied to equity vesting rather than discretionary, opportunistic sales. The company’s valuation metrics and recent quarterly results, together with commentary that it is consuming cash rapidly, provide part of the financial backdrop against which these sell-to-cover transactions occurred.

Risks

  • Continued cash consumption - InvestingPro highlights that the company is quickly burning through cash, which could pressure liquidity and operations.
  • Negative quarterly earnings - Q3 2025 reported EPS of -0.46 USD and modest revenue of 1.25 million USD signal ongoing profitability challenges.
  • Concentrated insider stock actions - While the reported sales were to cover tax withholding from vested restricted stock, insider transactions may be perceived by market participants as reducing insider-held shares and could affect investor sentiment in the small-cap equity market.

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