SAN ANTONIO, TX - Louis A. Hoch, the Chairman, President, and CEO of Usio, Inc. (NASDAQ:USIO), a company specializing in integrated payment solutions, has recently increased his stake in the company. On August 21, 2024, Hoch purchased 300 shares of common stock at a price of $1.50 per share, investing a total of $450.
This latest transaction brings Hoch's total holdings in Usio to 3,195,117 shares. The purchase, made directly by Hoch, signals a continued commitment from the company's top executive to Usio’s future.
Usio, Inc., formerly known as Payment Data Systems Inc ., provides a range of payment processing services. The company's offerings cater to merchants, billers, banks, service bureaus, and card issuers. Usio’s headquarters is located in San Antonio, Texas, and the company operates under the Functions Related to Depository Banking, NEC industry.
Investors often monitor the buying and selling activity of a company's executives as it can provide insights into their confidence in the company's performance and prospects. Hoch's recent purchase may be seen as a positive sign by investors who value the actions of company insiders as an indicator of corporate health and trajectory.
For more information on Usio, Inc. and their latest transactions, interested parties can review the company's filings and announcements.
In other recent news, financial technology firm Usio reported robust performance in the second quarter of fiscal 2024, marked by a notable rise in payment processing volume and positive GAAP net income. The company has raised its full-year adjusted EBITDA guidance to between $4 million and $4.5 million, reflecting growth across several segments and an improved financial position. Usio's total payment dollar processing volume grew by 24%, and the company achieved positive earnings per share for the quarter.
Despite stock repurchases, cash holdings rose to $10.5 million. The company reported growth in the PayFac segment, ACH processing, and card issuing. New ISVs were implemented and partnerships with Mobile Money and Class Wallet expanded. Usio is also in talks with a bankruptcy administration firm, though the timing of revenue from this deal remains uncertain.
The company expects full-year revenue growth to be between 3% and 7%, with earnings per share projected to be $0 to $0.03. Despite 2024's revenue growth being slightly below initial guidance, Usio's financial position has strengthened, and the company is focusing on increasing recurring revenue through GPR cards and long-term programs. Growth is also expected from new implementations and partnerships, including a large ISV ramping up in 2025.
InvestingPro Insights
As Louis A. Hoch demonstrates confidence in Usio, Inc. through his recent stock purchase, investors are taking note of the company's financial metrics and future prospects. According to InvestingPro data, Usio has a market capitalization of $40.22 million, with a revenue for the last twelve months as of Q2 2024 standing at $80.69 million. Despite the modest revenue growth of 3.38% during this period, the company has faced challenges, as evidenced by a negative operating income of -$2.72 million and a gross profit margin of 22.43%, which reflects the concerns about weak gross profit margins as highlighted in one of the InvestingPro Tips.
Moreover, the stock price volatility is an important factor for investors to consider, as indicated by the 1-year price total return of -9.7%. This aligns with another InvestingPro Tip that notes the company's share price movements have been quite volatile. While investors may find the CEO's stock purchase reassuring, these financial metrics provide a broader context for evaluating the company's performance.
InvestingPro Tips also suggest that while Usio has not been profitable over the last twelve months, analysts predict the company will achieve profitability this year. This forward-looking insight could be significant for investors assessing the company's turnaround potential. It is worth noting that Usio does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating assets.
For a deeper dive into Usio's financials and additional insights, there are more InvestingPro Tips available on the platform. To explore these further, interested investors can visit https://www.investing.com/pro/USIO, where a total of 7 additional tips are listed, providing a comprehensive analysis of the company's financial health and stock performance.
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