FlexShopper, Inc. (NASDAQ:FPAY) director Howard Dvorkin has recently increased his stake in the company, purchasing shares valued at approximately $83,112. The transactions, which took place over a series of days, saw Dvorkin buying shares at prices ranging from $1.09 to $1.11.
On June 3, 2024, Dvorkin acquired 52,200 shares of FlexShopper's common stock at an average price of $1.10. Following this transaction, on June 4, he purchased an additional 15,313 shares at an average price of $1.11. The buying streak continued on June 5, with Dvorkin adding 7,833 shares at the same average price of $1.11. These purchases were executed in multiple transactions at prices within the stated ranges.
The total number of shares Dvorkin now owns in FlexShopper following these transactions is 4,319,845. It is noted that these shares are held of record by PITA Holdings, LLC, where Dvorkin has a pecuniary interest. He is the President of Beta Investment Group, Inc., which is the manager of PITA Holdings. Dvorkin has disclaimed beneficial ownership of these securities except to the extent of his pecuniary interest.
The recent acquisitions by Dvorkin demonstrate a significant investment and perhaps a strong belief in the company's future prospects. FlexShopper, based in Boca Raton, Florida, operates in the equipment rental and leasing sector and is known for providing a range of consumer leasing options for various goods.
Investors often monitor insider transactions such as these for insights into the perspectives of company executives and directors regarding their company's performance and outlook. With this latest move, stakeholders of FlexShopper may find reasons to look closely at the company's trajectory and potential growth.
In other recent news, FlexShopper has seen a notable uptick in financial performance and strategic growth. The company's Q4 2023 earnings revealed a 7% increase in total fundings and a significant 42% rise in net lease and loan revenues. Gross profit skyrocketed over 300% and operating income reached $5.6 million, a stark contrast to the $5.5 million loss reported the previous year.
In addition, H.C. Wainwright maintained a Buy rating on FlexShopper and raised the price target to $2.50 following these strong results. The firm also revised its 2024 financial estimates for FlexShopper, projecting revenue to reach $155.0 million and adjusted EBITDA to hit $28.0 million. Preliminary estimates for 2025 place revenue at $173.0 million and adjusted EBITDA at $33.0 million.
These recent developments highlight FlexShopper's strategic expansions and robust growth. The company is transitioning its website into a comprehensive retail platform, broadening payment options, and expanding merchandise selection. Strategic partnerships and a new credit facility aim to expand market presence and sustain profitable growth into 2024.
InvestingPro Insights
FlexShopper, Inc. (NASDAQ:FPAY) has recently seen notable insider activity, with director Howard Dvorkin increasing his stake in the company. This move comes at a time when FlexShopper's financials and market performance present a mixed picture, as reflected in the latest data and insights from InvestingPro.
The company's market capitalization stands at a modest $25.14 million, and while the revenue for the last twelve months as of Q1 2024 shows a growth of 4.57%, FlexShopper is grappling with profitability challenges. The P/E Ratio, both standard and adjusted for the last twelve months as of Q1 2024, is listed at -2.99, indicating that the market has not yet seen earnings to justify the stock price. Moreover, the company's stock has experienced a significant 6-month price total return of -34.12%, which aligns with the InvestingPro Tips that suggest the stock has taken a big hit over the last six months and generally trades with high price volatility.
Despite these headwinds, there are positive signals within the company's financial structure. FlexShopper has liquid assets that exceed its short-term obligations, which could provide some financial stability in the near term. This is a critical factor for investors to consider, as it may offer some cushion against market volatility and the company's current lack of profitability.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that provide further insights into FlexShopper's performance and prospects. As of now, there are 6 more tips listed on InvestingPro, which can be a valuable resource for investors looking to make informed decisions. To explore these insights, visit: https://www.investing.com/pro/FPAY
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