In a recent transaction, Nicole Torraco, a director at Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ:PGY), sold 4,743 shares of the company's stock, according to a Form 4 filing with the Securities and Exchange Commission. The sale, which took place on June 20, 2024, amounted to a total of $57,097, with the shares being sold at a weighted average price of $12.0383 each.
Investors interested in the specifics of the sale may note that the shares were sold in multiple transactions at prices ranging from $11.86 to $12.26. Following the transaction, Torraco's direct ownership in the company's Class A Ordinary Shares dropped to zero.
The transaction was signed off by Natalie Wilmore, Attorney-in-Fact, as indicated in the power of attorney included with the filing. This document grants Wilmore the authority to act on behalf of Torraco in fulfilling the reporting obligations under Section 16 of the Securities Exchange Act of 1934.
Pagaya Technologies Ltd., a company in the financial services sector, is incorporated and based in Tel Aviv, with its business address listed at the Azrieli Sarona Building on Derech Menachem Begin.
The recent sale by a company insider often attracts attention from the investment community, as it provides insights into the perspectives of those with intimate knowledge of the company's operations and prospects. However, it's important for investors to consider a broader range of factors when evaluating the significance of insider transactions.
In other recent news, Pagaya Technologies has made significant strides in the financial technology sector, with Citi initiating coverage on the company's stock with a neutral rating. This decision acknowledges Pagaya's efforts to broaden its borrower base and enhance the loan origination process for its partners. Despite the volatility in the unsecured personal loan market, which accounts for roughly 55% of Pagaya's total volume, the company has shown promising growth signs in network volume and profitability.
On the earnings front, Pagaya reported strong results for the first quarter of 2024. The company achieved record network volumes of $2.4 billion, with total revenues reaching $245 million and adjusted EBITDA at $40 million. In addition, Pagaya raised $2 billion in funding, welcoming 18 new investors to its network.
In terms of future expectations, analysts project network volume for Q2 2024 to be between $2.2 billion and $2.4 billion. The company's full-year 2024 outlook includes network volume between $9 billion and $10.5 billion, total revenue and other income between $925 million and $1.05 billion, and adjusted EBITDA between $150 million and $190 million. These recent developments highlight Pagaya's ongoing commitment to enhancing profitability, diversifying funding sources, and expanding its lending network.
InvestingPro Insights
As Pagaya Technologies Ltd. (NASDAQ:PGY) experiences insider trading activity, investors are keen to understand the underlying financial metrics and analyst expectations that may influence such decisions. According to InvestingPro, two analysts have revised their earnings upwards for the upcoming period, indicating a more optimistic outlook on the company's financial performance. Additionally, Pagaya is trading at a low revenue valuation multiple, which could suggest that the stock is undervalued relative to its sales.
In terms of financial health, Pagaya's liquid assets exceed its short-term obligations, providing the company with a solid liquidity position. However, it's noteworthy that the company has not been profitable over the last twelve months, as evidenced by a negative P/E ratio of -8.18. The company's stock price movements have also been quite volatile, with a 6-month price total return of -35.22%, highlighting the potential risks associated with investing in the stock.
Investors can delve deeper into Pagaya's financials and find additional insights with InvestingPro. There are a total of 9 InvestingPro Tips available for PGY at https://www.investing.com/pro/PGY, which can provide a more comprehensive analysis. For those looking to enhance their investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription on InvestingPro.
InvestingPro Data also sheds light on the company's valuation and performance. With a market capitalization of $844.42M and a price/book ratio of 1.35 as of the last twelve months ending Q1 2024, Pagaya's market value relative to its book value is moderate. The revenue growth figures are promising, with a 13.81% increase over the last twelve months and a substantial quarterly revenue growth of 31.42% in Q1 2024, suggesting a strong upward trajectory in sales.
Considering these insights, investors may find it beneficial to weigh the recent insider sale against the backdrop of Pagaya's financial metrics and market valuation. Such a comprehensive approach can offer a clearer picture of the company's potential and guide informed investment decisions.
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