Bullish indicating open at $55-$60, IPO prices at $37
Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ:PGY) director Nicole Torraco sold a total of 2,371 shares of the company, resulting in a transaction value exceeding $28,000. The shares were sold on August 15, 2024, at a weighted average price of $12.151, with individual transactions occurring at prices ranging from $11.91 to $12.59.
The sale was part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. According to a footnote in the filing, the shares were primarily sold to cover tax obligations related to the vesting of restricted stock units.
Following the transaction, Torraco's direct holdings in Pagaya Technologies dropped to zero shares, indicating a complete divestment of her position in the non-derivative securities of the company at that time.
Investors often monitor insider transactions as they can provide insights into an insider’s view of the company’s value. However, sales to cover tax obligations are a common practice and may not necessarily reflect a lack of confidence in the company’s future prospects.
Pagaya Technologies, based in Tel Aviv, operates in the financial services sector, providing advanced technology solutions for the financial industry. The company's business address is listed at the Azrieli Sarona Building in Tel Aviv, Israel.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, with the signature of Natalie Wilmore, Attorney-in-Fact, dated August 19, 2024.
In other recent news, financial technology firm Pagaya Technologies Inc. posted strong second quarter results for 2024, surpassing its own revenue and adjusted EBITDA guidance. In light of these results, the company has raised its full-year outlook, attributing this optimistic revision to robust growth in fee revenue less production costs (FRLPC) and four consecutive quarters of positive operating cash flow. The company's annual revenue run rate now stands at approximately $1 billion, with FRLPC at $400 million and adjusted EBITDA at $200 million.
Pagaya has also signed a $1 billion forward flow agreement with Castlelake and received a AAA rating on its personal loan ABS program. Despite a reported net loss of $75 million, largely due to share-based compensation and fair value adjustments, the company achieved record levels of total revenue, FRLPC, and adjusted EBITDA in Q2. Core operating expenses have decreased, leading to an improved adjusted EBITDA margin above 20%.
Additionally, Pagaya has revealed plans for network expansion with top lenders, capital efficiency improvement, and unit economics enhancement. The company's recent acquisition of Theorem and partnership with OneMain were highlighted as strategic moves to enhance funding diversification and market presence. These recent developments suggest a strong position for Pagaya in the financial technology sector.
InvestingPro Insights
As Pagaya Technologies Ltd. (NASDAQ:PGY) navigates through a period of insider transactions, investors are closely scrutinizing the company's financial health and market performance. Recent data from InvestingPro provides a mixed picture of the company's current standing and future outlook.
InvestingPro Data reveals a challenging financial landscape for Pagaya Technologies, with a negative P/E Ratio of -6.16, reflecting investor concerns about the company's profitability. This sentiment is further underscored by the company's performance over the last twelve months, with a return on assets of -13.66%, indicating difficulties in generating profit from its assets.
Despite these challenges, there are signs of growth, with revenue increasing by 18.78% over the last twelve months as of Q2 2024, and a more robust quarterly revenue growth of 27.98% in Q2 2024. This suggests that while profitability remains elusive, the company is expanding its top-line figures.
InvestingPro Tips highlight a cautiously optimistic view from analysts, with three of them revising their earnings expectations upwards for the upcoming period. This could signal a belief that Pagaya Technologies may turn a corner towards profitability, as also suggested by analysts predicting the company will be profitable this year. Nonetheless, it's important to note the absence of dividend payouts to shareholders, and the company's recent stock price volatility, with the stock having fared poorly over the last month.
For investors seeking further insights, InvestingPro offers additional tips on Pagaya Technologies, which can be found at InvestingPro. These tips may provide deeper analysis and could be instrumental in making informed decisions about the company's stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.