SEATTLE—Rene Yoakum, Executive Vice President of Customer and Culture at Remitly Global, Inc. (NASDAQ:RELY), recently filed a report indicating significant stock transactions. On November 11, Yoakum sold shares of Remitly's common stock totaling $291,140. The shares were sold at a price of approximately $20.00 each, with slight variations in the sale price.
In addition to the sale, Yoakum also exercised options to acquire shares. The transactions included acquiring 4,000 shares at $1.70 per share and 10,557 shares at $2.00 per share, resulting in a total acquisition value of $27,914.
Following these transactions, Yoakum's direct ownership stands at 122,522 shares, with additional holdings comprising 297,108 restricted stock units (RSUs) and 276,041 stock options not detailed in this filing.
In other recent news, Remitly Global Inc. witnessed a substantial revenue increase in the third quarter, with a 39% growth to $336.5 million. The company also reported an adjusted EBITDA of $46.7 million, indicating a nearly 14% margin. Other highlights include a 35% increase in active customers to 7.3 million and a 42% rise in send volume to $14.5 billion. In light of these developments, Remitly raised its full-year revenue and adjusted EBITDA outlook for 2024.
KeyBanc Capital Markets adjusted its outlook on Remitly, increasing its price target while maintaining an Overweight rating. This decision was influenced by Remitly's strong third-quarter performance, driven by favorable foreign exchange-related tailwinds and increased send activity. The company also achieved record numbers of new customers and reached GAAP profitability, addressing some critical concerns previously held by investors.
Looking ahead, Remitly's initial revenue growth projections for fiscal year 2025 are slightly below market expectations, with a forecast of low- to mid-20s percentage growth. This cautious guidance aims to account for the normalization of the foreign exchange impact. However, Remitly anticipates continued growth and customer loyalty, driven by a strong product. Despite these positive projections, the company expects a sequential decline in the gross take rate due to transaction size and currency fluctuations. These are among the recent developments for Remitly.
InvestingPro Insights
Remitly Global, Inc. (NASDAQ:RELY) has been experiencing significant growth and market attention recently, as evidenced by the company's strong financial performance and stock market activity. According to InvestingPro data, Remitly's revenue growth stands at an impressive 35.18% over the last twelve months, with quarterly revenue growth accelerating to 39.27% in Q3 2024. This robust growth aligns with the company's expanding market presence in the digital remittance sector.
Despite the recent insider sale by Executive Vice President Rene Yoakum, the stock has shown remarkable strength. InvestingPro data reveals that Remitly has delivered a strong return of 48.3% over the last month and 40.33% over the last three months. This performance suggests that investors remain bullish on the company's prospects, potentially driven by its revenue growth and market position.
However, it's worth noting that Remitly is currently trading at a high Price to Book multiple of 6.36, indicating that the stock may be richly valued compared to its book value. This valuation metric, combined with the InvestingPro Tip that the stock's RSI suggests it is in overbought territory, may explain why insiders like Yoakum are taking the opportunity to sell some shares.
Another InvestingPro Tip highlights that Remitly is expected to be profitable this year, which could be a significant milestone for the company and a potential driver of future stock performance. Investors interested in a deeper analysis of Remitly's financial health and growth prospects can access additional InvestingPro Tips, with 8 more tips available on the platform.
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