In a recent move, FlexShopper, Inc. (NASDAQ:FPAY) director Howard Dvorkin has increased his stake in the company through the purchase of additional shares. The transactions, which took place over two consecutive days, amounted to a total investment of $106,097.
On May 16, Dvorkin acquired 44,868 shares at a weighted average price of $1.12, with individual transaction prices ranging from $1.11 to $1.13. The following day, he continued to expand his position by purchasing 49,862 shares, also at an average price of $1.12, within the same price range. These transactions have boosted Dvorkin's ownership in FlexShopper to a significant 4,157,568 shares.
It is important to note that the shares are held of record by PITA Holdings, LLC, managed by Beta Investment Group, Inc., where Dvorkin serves as President. Despite this indirect ownership, Dvorkin has stated he only claims beneficial ownership of the shares to the extent of his pecuniary interest. The reported figures exclude an additional 1,190,000 shares of common stock issuable upon the exercise of warrants held by PITA Holdings.
These latest acquisitions by a key insider are often viewed by investors as a sign of confidence in the company's future prospects. FlexShopper, a leader in the equipment rental and leasing services industry, has yet to comment on these transactions.
InvestingPro Insights
As FlexShopper, Inc. (NASDAQ:FPAY) catches the market's attention with insider buying activity, investors are keen on understanding the company's financial health and future outlook. Recent data from InvestingPro provides a snapshot of the company's financial metrics and performance.
The company's market capitalization currently stands at $25.47 million USD, indicating its size in the marketplace relative to its peers. Despite the insider confidence, FlexShopper's Price/Earnings (P/E) ratio is at -3.01, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -3.05, reflecting market skepticism about future earnings. The company's revenue growth has been positive, with a 4.57% increase over the last twelve months as of Q1 2024, and a more robust quarterly revenue growth of 10.26% in Q1 2024, which may signal improving business dynamics.
InvestingPro Tips for FlexShopper highlight some cautionary points for investors considering the stock. The company is quickly burning through cash and analysts do not anticipate it will be profitable this year. Moreover, the stock is known for its high price volatility, which could be a concern for risk-averse investors. On the positive side, FlexShopper's liquid assets exceed its short-term obligations, indicating a degree of financial stability in the near term.
For those interested in a deeper dive into FlexShopper's financials and strategic positioning, InvestingPro offers additional insights. There are 7 more InvestingPro Tips available, which can be accessed through a subscription. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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