MoneyLion CEO Diwakar Choubey sells $1.6 million in stock

Published 21/02/2025, 02:30
MoneyLion CEO Diwakar Choubey sells $1.6 million in stock

Diwakar Choubey, CEO and Director of MoneyLion Inc. (NYSE:ML), recently executed a significant stock sale. According to a Form 4 filing with the SEC, Choubey sold 18,506 shares of MoneyLion’s Class A common stock on February 18, 2025, at a price of $87.26 per share. The transaction totaled approximately $1.6 million. The sale comes as MoneyLion’s stock has shown remarkable strength, gaining nearly 100% over the past six months, with InvestingPro data indicating the stock remains undervalued despite trading near its 52-week high of $106.82.

This sale was part of a pre-arranged trading plan aimed at covering tax liabilities associated with the vesting of restricted stock units (RSUs) and performance share units (PSUs). Following this transaction, Choubey retains ownership of 320,865 shares directly in the company, which currently maintains a market capitalization of approximately $979 million and demonstrates strong financial health according to InvestingPro metrics.

The filing also detailed various transfers of shares to trusts and family members, all conducted at no monetary consideration. These internal transfers, while not affecting the overall market, are part of Choubey’s broader estate and tax planning strategy. The company’s strong fundamentals are reflected in its healthy current ratio of 6.33 and expected net income growth this year, as revealed by InvestingPro analysis.

In other recent news, MoneyLion has received attention from analysts with a maintained Buy rating from Craig-Hallum. The analyst set a price target of $105, citing expectations for significant adjusted EBITDA by fiscal year 2025. This target is based on a 13x multiple of the projected FY25 adjusted EBITDA, a figure that stands out compared to similar companies trading between 6 and 17 times their projected earnings. The price target also considers the potential for MoneyLion to reach a $37.50 target price, which would trigger a contingent value rights payment. This reflects the analyst’s confidence in MoneyLion’s future performance and anticipated milestones. The maintained rating and price target suggest a positive outlook, with the analyst highlighting MoneyLion’s potential to outperform its peers in the financial sector. The commentary indicates a robust growth trajectory for the company’s adjusted EBITDA, underscoring the firm’s financial prospects.

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