NEW YORK—Diwakar Choubey, CEO and Director of MoneyLion Inc. (NYSE:ML), has recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Choubey disposed of 25,555 shares of Class A Common Stock over two transactions, totaling approximately $2.1 million.
The first transaction, executed on November 13, 2024, involved the sale of 5,422 shares at an average price of $90.0178 per share. The second transaction, which took place on November 15, 2024, saw Choubey selling an additional 20,133 shares at an average price of $80.11 per share. These sales were conducted under a pre-established trading plan compliant with Rule 10b5-1(c) of the Securities Exchange Act of 1934.
Following these transactions, Choubey holds 690,825 shares directly, with additional shares held indirectly through various trusts and family arrangements. The sales were part of an automatic plan to cover tax liabilities related to the vesting of restricted and performance share units.
In other recent news, financial technology firm MoneyLion reported a record third quarter revenue of $135 million, marking a 23% increase from the previous year. The company also raised its full-year revenue guidance to a range of $536 million to $541 million. MoneyLion's adjusted EBITDA hit a record $24 million, reflecting an 18% margin. These strong results were attributed to significant customer growth, with the total reaching 18.7 million, and the expansion of its enterprise segment.
Needham maintained a Buy rating on MoneyLion and increased the price target to $100 from $70, following the company's robust third-quarter results. The analyst highlighted the company's guidance for the fourth quarter, which surpassed expectations due to the growing strength of MoneyLion's enterprise business.
Moreover, MoneyLion launched MoneyLion Checkout to enhance conversion rates for enterprise partners, showing positive early indicators, including a 25% improvement in click-through rates. However, the company reported one-time legal expenses totaling $8 million, which affected EBITDA adjustments. These recent developments demonstrate the company's strategic initiatives, including the expansion into new financial verticals such as auto loans and insurance.
InvestingPro Insights
While CEO Diwakar Choubey's recent stock sales have caught investors' attention, it's crucial to consider MoneyLion's broader financial picture. According to InvestingPro data, MoneyLion's market capitalization stands at $889.32 million, with a revenue of $500.28 million for the last twelve months as of Q3 2023. The company has shown impressive revenue growth of 23.4% over this period, indicating strong business momentum.
InvestingPro Tips highlight that MoneyLion's net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook aligns with the company's recent performance, as it has been profitable over the last twelve months. However, investors should note that the stock is trading at a high earnings multiple, with a P/E ratio of 294.02, suggesting high growth expectations are already priced in.
Another interesting InvestingPro Tip reveals that MoneyLion's stock price movements are quite volatile. This volatility is evident in the company's recent stock performance, with a strong return of 79.62% over the last month and 149.8% over the past year. Such significant price movements underscore the importance of careful timing for both investors and insiders like CEO Choubey when executing trades.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for MoneyLion, providing a deeper understanding of the company's financial health and market position.
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