Saunders Mitchell, the Chief Accounting Officer of Atlanticus Holdings Corp (NASDAQ:ATLC), has recently sold shares in the company. According to a recent SEC filing, Mitchell sold 16,004 shares of common stock, generating total proceeds of approximately $889,022. The shares were sold at a weighted average price of $55.55, with individual transaction prices ranging from $54.70 to $56.09. Following this transaction, Mitchell retains ownership of 50,973 shares in the company.
In other recent news, Atlanticus Holdings Corp. has been the subject of positive attention from financial services firms BTIG and B.Riley. Both firms maintain a 'Buy' rating on Atlanticus shares, with BTIG raising its price target from $45 to $54. This comes on the back of robust growth metrics from the company, including a 16% year-over-year rise in purchase volume and a 12% increase in loan growth. The company also reported a decrease in principal net charge-offs and delinquencies, contributing to its strong performance.
The recent growth of Atlanticus is attributed to its deeper penetration into existing large merchant relationships, a trend expected to intensify during the fourth quarter of 2024. Furthermore, the company's partnership with Synchrony is projected to contribute to growth by the second quarter of 2025. Atlanticus also recently priced a public add-on offering of $55 million in senior notes, following a previous issuance of $57.25 million in senior notes.
B.Riley's analysts predict a potential upside of over 50% for Atlanticus shares within the next 12 months, driven by expected credit improvement, margin expansion, and sustained double-digit portfolio growth. The firm has adjusted the company's earnings forecasts for fiscal years 2024, 2025, and 2026 to $4.50, $6.15, and $7.40 per share, respectively. In terms of earnings, Atlanticus's Q1 2024 earnings met expectations with a net income of $19.9 million. These are the recent developments for Atlanticus Holdings Corp.
InvestingPro Insights
The recent stock sale by Atlanticus Holdings Corp's Chief Accounting Officer comes at a time when the company's shares are trading near their 52-week high. According to InvestingPro data, ATLC's stock price is currently at 97.77% of its 52-week high, with a closing price of $54.30 as of the most recent trading day.
This sale occurs against a backdrop of strong performance for ATLC. The company has demonstrated impressive returns across various timeframes, with InvestingPro data showing a 49.04% return over the past month and a substantial 120.82% return over the last six months. These figures align with an InvestingPro Tip indicating that ATLC has shown "Strong return over the last month" and "Large price uptick over the last six months."
From a valuation perspective, ATLC's P/E ratio stands at 9.99, which is relatively low compared to many growth stocks. However, an InvestingPro Tip suggests that the stock is "Trading at a high P/E ratio relative to near-term earnings growth," with a PEG ratio of 1.2 for the last twelve months as of Q3 2024. This indicates that investors may be paying a premium for the company's expected growth.
It's worth noting that while the stock has shown strong performance, another InvestingPro Tip cautions that the "RSI suggests the stock is in overbought territory," which could be a factor in the insider's decision to sell shares at this time.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for ATLC, providing a deeper understanding of the company's financial health and market position.
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