FlexShopper, Inc. (NASDAQ:FPAY) reported that Howard Dvorkin, a director and significant shareholder, purchased 9,800 shares of company stock for a total value of $12,348 on June 28, 2024, according to a recent SEC filing. The shares were bought at a price of $1.26 each.
This transaction has increased Dvorkin's direct holdings in FlexShopper to 4,450,046 shares. It's important to note that these shares are held of record by PITA Holdings, LLC, where Dvorkin has a pecuniary interest. The manager of PITA Holdings is Beta Investment Group, Inc., with Dvorkin serving as its President. However, Dvorkin has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest.
Investors often keep an eye on insider transactions as they can provide insights into how the company's leadership perceives the value of the stock. Dvorkin's purchase could be seen as a sign of confidence in the future prospects of FlexShopper.
FlexShopper, headquartered in Boca Raton, Florida, operates in the equipment rental and leasing sector. The company has undergone name changes in the past, previously known as Anchor Funding Services, Inc. before adopting its current name.
The transaction was officially signed off by Howard Dvorkin on July 2, 2024, as indicated in the ownership document filed with the SEC.
In other recent news, FlexShopper displayed robust growth in the fourth quarter of 2023, with significant improvements across various metrics. The company reported a 7% increase in total fundings and a substantial 42% rise in net lease and loan revenues. Gross profit increased by over 300%, and operating income reached $5.6 million, a stark contrast from the $5.5 million loss experienced in the previous year. FlexShopper also announced strategic expansions, including a new credit facility and partnerships aimed at broadening market presence.
H.C. Wainwright maintained a Buy rating on FlexShopper and increased the price target to $2.50, following the company's strong performance. The firm revised its 2024 financial estimates, projecting FlexShopper's revenue to reach $155.0 million, a rise from the earlier forecast of $152.9 million. The firm also presented its preliminary 2025 revenue and adjusted EBITDA estimates, anticipating that the company will generate revenue of $173.0 million and an adjusted EBITDA of $33.0 million in 2025. These recent developments reflect the firm's confidence in FlexShopper's growth potential.
InvestingPro Insights
In light of Howard Dvorkin's recent stock purchase, a deeper look at FlexShopper, Inc. (NASDAQ:FPAY) through InvestingPro's lens offers additional context to investors. According to InvestingPro data, FlexShopper has a market capitalization of approximately $27.41 million. Despite a challenging environment, indicated by a negative P/E ratio of -3.24 for the last twelve months as of Q1 2024, the company has managed to maintain a gross profit margin of 87.96%. This suggests that while profitability remains elusive, FlexShopper is effective at controlling the cost of goods sold relative to revenue.
Insight from InvestingPro Tips reveals that FlexShopper is currently not expected to be profitable this year, which aligns with the negative earnings per share (EPS) figures. Moreover, the company's valuation implies a poor free cash flow yield, signaling potential concerns over its ability to generate sufficient cash from operations. On a more positive note, FlexShopper's liquid assets exceed its short-term obligations, which may provide some financial stability in the near term. Additionally, the company has seen a strong return over the last month, with a 12.73% price total return, potentially reflecting market reactions to insider confidence or other factors.
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