Nicole Torraco, a director at Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ:PGY), recently sold 2,371 shares of the company, totaling approximately $21,160. The shares were sold at an average price of $8.9248. This transaction was part of a plan to cover taxes incurred from the vesting of restricted stock units, according to a Rule 10b5-1 plan dated March 21, 2024. Following this sale, Torraco now holds 9,487 shares directly. Additionally, on November 14, she acquired 4,743 Class A Ordinary Shares at no cost through the vesting of restricted stock units.
In other recent news, Pagaya Technologies reported solid financial results in their 3Q 2024 earnings call, with an annual revenue rate approaching $1 billion and an adjusted EBITDA of $220 million. The company has set its sights on reaching GAAP profitability by 2025, backed by a positive total cash flow. In addition, Pagaya has seen significant growth in loans and customer acquisition, with nearly two million new customers added through partnerships and over $24 billion in loans generated.
Pagaya also announced plans to strengthen partner relationships, expecting to have over eight partnerships generating more than $500 million in network volume by 2025. The company has also experienced substantial growth in point-of-sale offerings, with a record $200 billion in quarterly application volume. Pagaya has bolstered its balance sheet, raising $160 million to improve liquidity and intends to pay down high-cost borrowings.
The company's outlook for 2024 includes a full-year network volume between $9.5 billion and $9.7 billion, with a projected total revenue between $1.01 billion and $1.025 billion, and adjusted EBITDA between $195 million and $205 million. Despite some credit impairments related to 2023 vintage loans, Pagaya's diversified funding strategy and operational efficiency have positioned it well to achieve its profitability goals in the near future. These are significant recent developments for Pagaya Technologies.
InvestingPro Insights
The recent insider sale by Nicole Torraco at Pagaya Technologies Ltd. (NASDAQ:PGY) comes at a time when the company's stock has been experiencing significant volatility. According to InvestingPro data, PGY's stock has taken a substantial hit over the last week, with a 1-week price total return of -47.84%. This sharp decline is part of a broader trend, as the stock has fallen by 26.15% over the past three months and 25.97% over the last six months.
Despite these challenges, Pagaya Technologies has shown strong revenue growth, with a 23.38% increase in the last twelve months as of Q3 2023, reaching $970.9 million. The company's gross profit margin stands at a healthy 40.89%, indicating efficient operations.
InvestingPro Tips highlight that while PGY is trading near its 52-week low and has not been profitable over the last twelve months, analysts predict the company will be profitable this year. This optimism is reflected in the InvestingPro Fair Value of $12.34, suggesting potential upside from the current trading price.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for PGY, providing a deeper understanding of the company's financial health and market position.
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