Lesaka Technologies Inc. (NASDAQ:LSAK) director Christopher G.B. Meyer has sold a significant portion of his holdings in the company, as reported in recent SEC filings. Meyer offloaded a total of 81,479 shares in two separate transactions, garnering a total of $379,847.
The first sale took place on June 21, 2024, with Meyer selling 71,479 shares at a price of $4.63 each. Following this transaction, he then sold an additional 10,000 shares on June 24, 2024, at a higher price of $4.89 per share. The sales occurred within a price range of $4.63 to $4.89, indicating a variation in market price over the course of the three days.
After these transactions, Meyer's remaining direct ownership in Lesaka Technologies stands at 665,868 shares. This latest move by a company insider might attract the attention of investors and market analysts, as insider sales are often scrutinized for potential signals about a company's future prospects.
Lesaka Technologies, known for its functions related to depository banking, has not released any official statements regarding these transactions. Investors and potential shareholders of Lesaka Technologies are recommended to keep an eye on insider trading activities for a broader understanding of market and company trends.
In other recent news, Lesaka Technologies has reported a significant improvement in its financial performance for the third quarter of fiscal year 2024. The company achieved a revenue of ZAR 2.6 billion and EBITDA of ZAR 183 million, while also successfully reducing its net debt to Group adjusted EBITDA to 2.6x. Lesaka Technologies has also signed the Adumo transaction, which is set to expand the company's presence in several African countries, including Namibia, Botswana, Zambia, and Kenya.
In addition to these developments, Lesaka Technologies has seen growth in both its Merchant and Consumer divisions, driven by value-added services, card acquiring, cash management, and credit solutions. The company's Consumer division has reported growth in account activations and loan book size, with a focus on cross-selling to deepen customer relationships.
Lesaka Technologies has also reaffirmed its full-year revenue guidance, expecting to hit the lower end of the ZAR 10.7 billion to ZAR 11.7 billion range. The company has raised its Group adjusted EBITDA guidance for FY '24 to between ZAR 740 million and ZAR 760 million. The Adumo transaction, a significant development for the company, is anticipated to be completed in August. Despite facing challenging economic conditions in Southern Africa, Lesaka Technologies remains optimistic about its future prospects.
InvestingPro Insights
Lesaka Technologies Inc. (NASDAQ:LSAK) has recently seen noteworthy insider trading activity, with director Christopher G.B. Meyer reducing his stake in the company. Investors considering the implications of this move on their portfolios may find additional context in the company's financial data and market performance. According to InvestingPro data, Lesaka Technologies has a market capitalization of $280.75 million, but it is grappling with profitability challenges. The company's P/E ratio stands at -12.6, reflecting the market's concerns about its earnings potential.
Despite the insider sales, Lesaka Technologies has demonstrated a strong return over the last three months, with a 30.54% price total return, and an even more impressive six-month price total return of 40.41%. These figures suggest a robust short-term performance in the market. However, InvestingPro Tips indicate that the company suffers from weak gross profit margins, currently at 21.55%, and analysts do not anticipate Lesaka Technologies will be profitable this year. Moreover, the company has not been profitable over the last twelve months, which can be a red flag for potential investors.
Investors should note that Lesaka Technologies does not pay a dividend, which can be a drawback for those seeking income-generating investments. For those interested in a deeper analysis, there are additional InvestingPro Tips available, which can provide more nuanced insights into Lesaka Technologies' financial health and future prospects. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information that could inform investment decisions. Visit InvestingPro for a comprehensive list of tips and to make the most of this offer.
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