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NEW YORK - Pagaya Technologies LTD. (NASDAQ:PGY), a fintech company currently valued at $2.41 billion, announced Tuesday the closing of a $400 million AAA-rated auto loan asset-backed securities (ABS) transaction, bringing its total auto ABS issuance to $1.3 billion year-to-date. The company’s stock has shown remarkable momentum, delivering a 243% return over the past six months.According to InvestingPro analysis, Pagaya appears slightly undervalued at its current trading price of $31.66, with multiple indicators suggesting strong growth potential.
The transaction, identified as RPM 2025-4, represents Pagaya’s largest auto ABS deal in 2025 and attracted 15 investors, including six new participants. Four of these investors were entirely new to Pagaya’s capital markets program.
According to a company press release, the transaction was oversubscribed and included a diverse mix of insurance companies, pension funds, investment managers, and hedge funds from both domestic and international markets.
Sahil Chandiramani, Pagaya’s Head of Capital Markets, stated that demand for the company’s funding products is at "peak levels" and that each transaction helps establish new strategic relationships while strengthening existing ones.
The RPM 2025-4 deal marks Pagaya’s tenth ABS transaction across all asset classes in 2025. The company reports it has raised over $8.5 billion in capital commitments this year to fund various asset classes across its ABS and forward-flow programs.
Since 2018, Pagaya has raised more than $30.2 billion across 74 ABS transactions to fund loan originations in multiple product categories, including personal loans, auto loans, and point-of-sale financing.
Pagaya Technologies, which is headquartered in New York and Tel Aviv, uses machine learning and AI-driven approaches to provide consumer credit and residential real estate products through its partner network. For a deeper understanding of Pagaya’s business model and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro.
In other recent news, Pagaya Technologies announced that it expects to exceed its second-quarter 2025 guidance, with preliminary results indicating revenue of approximately $326 million. This figure surpasses the prior guidance range of $290 million to $310 million, and network volume is projected to reach around $2.6 billion, exceeding earlier estimates. Additionally, Pagaya and Castlelake have expanded their partnership with a new agreement for the purchase of up to $2.5 billion in personal loan assets over 16 months, doubling their previous commitment. Analysts have responded positively to these developments, with Citi raising its price target for Pagaya to $40, highlighting increased network growth expectations. Benchmark also increased its price target to $42 following the company’s strong preliminary second-quarter results. JMP Securities reiterated its Market Outperform rating with a $26 price target, maintaining a positive outlook on the company’s performance. These recent developments reflect Pagaya’s robust growth and expanding partnerships in the financial sector.
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