FlexShopper, Inc. (NASDAQ:FPAY), a leader in the lease-to-own retail sector, has reported that director and ten percent owner Howard Dvorkin acquired additional shares in the company. According to the latest filing, Dvorkin made two separate purchases of FlexShopper's common stock, investing a total of $27,700.
The first transaction occurred on May 23, 2024, where Dvorkin bought 6,020 shares at a weighted average price of $1.15 per share. The second purchase was on May 29, 2024, for 18,226 shares at an average price of $1.14 each. The prices for these transactions ranged from $1.12 to $1.16, reflecting the dynamic nature of the market during the period of these acquisitions.
These recent purchases have increased Dvorkin's holdings significantly, marking a strong signal of confidence in the company's future. Following the transactions, his directly associated holdings have grown to 4,244,499 shares of FlexShopper's common stock.
Investors and the market often keep a close eye on insider trading activities, as they can provide insights into the perspectives of those who know the company best. Dvorkin's role as a major shareholder and director, coupled with his latest investments, might be interpreted as a positive indicator by the investment community.
FlexShopper, headquartered in Boca Raton, Florida, operates under the equipment rental and leasing industry and has been known previously as Anchor Funding Services, Inc. before changing its name. The company specializes in providing a variety of consumer products via its lease-to-own options, catering to individuals who may not have immediate funds to make outright purchases.
As per the filing, the shares acquired by Dvorkin are held of record by PITA Holdings, LLC, with Beta Investment Group, Inc. managing PITA. Dvorkin serves as the President of Beta Investment Group and has a pecuniary interest in the shares held by PITA.
FlexShopper's stock transactions and the ongoing investment by insiders such as Howard Dvorkin are events that market watchers and investors will likely continue to follow as they assess the company's financial health and strategic direction.
InvestingPro Insights
Amid the recent insider trading activity, FlexShopper, Inc. (NASDAQ:FPAY) presents a mixed financial picture according to the latest data from InvestingPro. With a market capitalization of $23.96 million, the company's valuation reflects the challenges it faces in the competitive lease-to-own retail sector. The adjusted P/E ratio stands at -2.8, suggesting that investors are concerned about the company's earnings potential.
The company's revenue has seen a growth of 4.57% over the last twelve months as of Q1 2024, indicating a steady increase in its sales figures. However, this growth is juxtaposed against a backdrop of high price volatility, as indicated by one of the InvestingPro Tips. This volatility is reflected in the price total returns, with a 1-month price total return of 3.64%, but a more concerning 6-month price total return of -20.83%.
InvestingPro Tips highlight that analysts do not expect FlexShopper to be profitable this year, and the company has not been profitable over the last twelve months. Additionally, the company does not pay a dividend, which might deter income-focused investors. On a more positive note, FlexShopper's liquid assets exceed its short-term obligations, suggesting that the company maintains a degree of financial flexibility.
For investors seeking a deeper dive into the financial health and future prospects of FlexShopper, InvestingPro offers additional tips. There are 7 more InvestingPro Tips available, providing a comprehensive analysis of the company's performance and potential investment risks. To access these insights, investors can 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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