Payoneer global sees $77.4 million stock sale by TCV entities

Investors in Payoneer Global Inc. (NASDAQ:PAYO) are taking note of a significant stock sale by various TCV entities, as disclosed in a recent SEC filing. On November 11, 2024, a total of 7.5 million shares were sold at $10.32 per share, amounting to approximately $77.4 million.

The shares were sold by TCV VIII, L.P., TCV VIII (A), L.P., TCV VIII (B), L.P., and TCV Member Fund, L.P. Specifically, TCV VIII, L.P. sold 5,337,335 shares, TCV VIII (A), L.P. sold 1,439,310 shares, TCV VIII (B), L.P. sold 331,491 shares, and TCV Member Fund, L.P. sold 391,864 shares.

Following this transaction, these entities collectively hold 34,197,116 shares in Payoneer. The entities involved in the sale are part of a group that may be considered a 13(d) group, as noted in the filing.

The transaction was carried out under the direction of Technology Crossover Management VIII, Ltd., the designated filer for this sale.

In other recent news, Payoneer has demonstrated robust financial performance, with a 19% surge in total revenue for the third quarter of 2024, reaching $248 million. This coincides with a significant 25% growth in total volume and an adjusted EBITDA of $69 million, marking a 28% margin. Additionally, the company's B2B segment expanded by 57%, contributing nearly a quarter of the quarter's revenue.

In light of these developments, Benchmark maintained a positive outlook on Payoneer, increasing the stock's price target to $12 from the previous $10, while maintaining a Buy rating. The firm's analysis suggests that despite Payoneer's share price having doubled over the past three months, the stock still trades at a relatively modest 9.7 times the projected FY26 enterprise value to earnings.

Furthermore, Payoneer's customer funds held have risen by 13% to $6.1 billion, and interest income stands at $65 million. Consequently, the company has raised its revenue guidance for 2024 to between $950 million and $960 million.

Lastly, Payoneer is progressing in its acquisition of a licensed Chinese payment service provider, expected to conclude in the first half of 2025. This acquisition is part of the company's strategic initiatives to drive continued growth in the global payments industry. These are the recent developments concerning Payoneer.

InvestingPro Insights

The recent stock sale by TCV entities comes at a time when Payoneer Global Inc. (NASDAQ:PAYO) is experiencing strong market performance. According to InvestingPro data, Payoneer has seen impressive price returns, with a 30.96% increase over the past month and a substantial 76.11% gain over the last six months. This upward trajectory aligns with an InvestingPro Tip highlighting Payoneer's "Strong return over the last three months."

Despite the large stock sale, Payoneer's financial metrics remain robust. The company boasts a healthy gross profit margin of 84.55% for the last twelve months as of Q3 2024, indicating strong profitability. Additionally, an InvestingPro Tip notes that Payoneer is "Trading at a low P/E ratio relative to near-term earnings growth," suggesting potential value for investors even after the recent price appreciation.

Payoneer's market capitalization stands at $3.69 billion, reflecting its significant presence in the fintech space. The company's revenue growth of 18.97% over the last twelve months demonstrates its ability to expand in a competitive market.

For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Payoneer, providing deeper insights into the company's financial health and market position.

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