Atlanticus Holdings director Hudson Deal sells $30,024 in stock

ATLANTA—Hudson (NYSE:HUD) Deal, a director at Atlanticus Holdings Corp (NASDAQ:ATLC), recently sold a portion of the company's common stock. According to a filing with the Securities and Exchange Commission, Deal sold 613 shares on November 15, 2024. The shares were sold at a weighted average price of $48.98, totaling $30,024.

Following this transaction, Deal retains direct ownership of 64,342 shares in the company. The transaction was executed in multiple trades at prices ranging from $48.89 to $48.98.

In other recent news, Atlanticus Holdings Corp. has been in the spotlight of financial services firms BTIG and B.Riley, both maintaining a 'Buy' rating on the company's stock. BTIG has increased its price target to $54, reflecting Atlanticus's robust growth and strong performance metrics. The firm noted significant increases in purchase volume and loan growth, alongside a notable decrease in principal net charge-offs and delinquencies.

B.Riley, on the other hand, sees a potential upside of over 50% for Atlanticus shares within the next year, driven by expected credit improvement, margin expansion, and sustained double-digit portfolio growth. The firm's earnings forecasts for fiscal years 2024, 2025, and 2026 have been adjusted to $4.50, $6.15, and $7.40 per share, respectively, due to accounting volatility.

In addition to analyst attention, Atlanticus has made corporate moves, recently pricing a public add-on offering of $55 million in senior notes, following a previous issuance of $57.25 million. These funds are earmarked for redeeming part of the Class B preferred units of a subsidiary or for general corporate purposes.

Moreover, Atlanticus's Q1 2024 earnings met expectations with a net income of $19.9 million. The company has implemented additional fees and new product features, projected to offset the effects of new late fee rules by mid-2025. These are among the latest developments in the company's journey.

InvestingPro Insights

As Hudson Deal's recent stock sale at Atlanticus Holdings Corp (NASDAQ:ATLC) catches investor attention, it's worth examining the company's current financial landscape. According to InvestingPro data, ATLC boasts a market capitalization of $746.52 million, with a price-to-earnings (P/E) ratio of 9.26, suggesting the stock may be undervalued compared to industry peers.

The company's financial performance has been robust, with revenue growth of 8.5% over the last twelve months as of Q3 2024, reaching $374.09 million. This growth is complemented by a strong gross profit margin of 70.81% and an operating income margin of 34.15%, indicating efficient operations and cost management.

InvestingPro Tips highlight that ATLC has seen significant returns recently, with a 32.63% price increase over the last month and an impressive 105.26% surge over the past six months. The stock is currently trading near its 52-week high, with the price at 98.48% of its peak. These metrics suggest strong momentum and investor confidence in the company's prospects.

While Deal's stock sale might raise questions, it's important to note that ATLC's financial indicators remain strong. The company's profitability over the last twelve months and analysts' predictions of continued profitability this year provide a positive outlook. However, potential investors should be aware that ATLC does not pay a dividend, which may be a consideration for income-focused shareholders.

For those seeking a deeper analysis, InvestingPro offers 13 additional tips on ATLC, providing a more comprehensive view of the company's financial health and market position. These insights can be valuable for investors looking to make informed decisions in light of recent insider transactions.

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