In a recent transaction, Howard Dvorkin, a director and ten percent owner of FlexShopper, Inc. (NASDAQ:FPAY), expanded his stake in the company with the purchase of additional shares. Dvorkin acquired 3,381 shares of FlexShopper's common stock at a price of $1.16 per share, totaling approximately $3,921.
The transaction, which took place on August 20, 2024, increased Dvorkin's direct holdings to 4,518,358 shares. It's important to note that the shares are held of record by PITA Holdings, LLC, and managed by Beta Investment Group, Inc., where Dvorkin serves as President. He has clarified that he disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.
FlexShopper, Inc., headquartered in Boca Raton, Florida, operates in the equipment rental and leasing sector. Dvorkin's recent purchase may signal his confidence in the company's future prospects.
Investors often monitor the buying and selling activities of company insiders as these transactions can provide insights into their views on the company's current valuation and future performance. However, it is also essential to consider a broader range of factors when evaluating investment decisions.
This latest acquisition by Howard Dvorkin represents a noteworthy investment by a key insider and further aligns his interests with those of FlexShopper's shareholders.
InvestingPro Insights
Following the recent insider transaction involving Howard Dvorkin and FlexShopper, Inc. (NASDAQ:FPAY), investors may find additional context in the company's financial metrics and analyst expectations. As of the last twelve months leading up to Q2 2024, FlexShopper has demonstrated a significant revenue growth of 23.81%, with a quarterly surge of 29.46%, reflecting a potentially positive business trajectory. This is coupled with an impressive gross profit margin of 86.83%, indicating efficient cost management relative to revenue.
Despite these strong revenue and profit metrics, it's important to note that FlexShopper is currently facing challenges with profitability. The company has a negative P/E ratio of -5.29, and analysts do not anticipate the company will be profitable this year, as reflected in the InvestingPro Tips. Furthermore, the company's valuation implies a poor free cash flow yield, which may raise concerns about long-term financial sustainability. Additionally, while the company's liquid assets exceed short-term obligations, indicating a degree of financial stability, FlexShopper does not pay a dividend to shareholders, which may limit its attractiveness to income-focused investors.
On the market performance front, FlexShopper's stock has had a significant return over the last week, with a 10.27% price total return, which may capture the attention of momentum investors. However, the price has performed poorly over the last decade, and it is currently trading at a high Price / Book multiple of 5.43. This could suggest that the stock is valued richly relative to its book value, an important consideration for value investors.
For investors seeking a deeper dive into FlexShopper's financial health and future prospects, the InvestingPro platform offers additional insights. Currently, there are more InvestingPro Tips available, providing a comprehensive analysis that could be invaluable in making informed investment decisions.
It should be noted that insider transactions like Dvorkin's are just one piece of the puzzle when assessing a company's investment potential. By considering the broader financial context provided by InvestingPro Data and Tips, investors can gain a more nuanced understanding of FlexShopper's current position and future outlook.
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