Gregory S. Daily, the Chief Executive Officer of i3 Verticals , Inc. (NASDAQ:IIIV), recently made significant purchases of the company's Class A common stock. According to a recent SEC filing, Daily acquired a total of 88,544 shares in two separate transactions. The purchases, made on November 22 and November 25, totaled approximately $2.1 million, with share prices ranging from $23.51 to $24.06.
Following these acquisitions, Daily now directly owns 88,544 shares of i3 Verticals. Additionally, he holds an indirect interest in shares through entities such as GSD Family Investments, LLC and Hardsworth LLC, as well as shares held by a family member.
These transactions underscore Daily's continued investment in the Nashville-based payment and software solutions provider, which operates in the business services sector.
In other recent news, i3 Verticals has completed the $438 million sale of its Merchant Services business to Payroc. This strategic divestiture, along with the sale of two smaller divisions, has streamlined the company's focus on Vertical Software (ETR:SOWGn), serving key sectors such as Public Sector, Education, and Healthcare. Analysts at DA Davidson and KeyBanc Capital Markets have maintained their positive outlook, with DA Davidson reiterating a Buy rating and a $32.00 price target, and KeyBanc maintaining an Overweight rating with a $27.00 price target on i3 Verticals' shares.
In addition to these significant transactions, i3 Verticals has also announced changes in its executive team. Geoff Smith has assumed the role of Chief Financial Officer, with former CFO, Clay Whitson, transitioning to the role of Chief Strategy Officer.
In terms of financial performance, i3 Verticals reported a decline in revenues and adjusted EBITDA in their Q3 2024 results, primarily due to lower one-time software license sales. However, the company has projected high-single-digit organic revenue growth and EBITDA margin improvement for fiscal years 2024 and 2025. The recent acquisition in the Public Sector vertical is expected to drive double-digit growth in fiscal year 2025. These are among the recent developments for i3 Verticals.
InvestingPro Insights
Gregory S. Daily's recent $2.1 million investment in i3 Verticals aligns with several key insights from InvestingPro. The company's stock has shown significant momentum, with a 26.82% price total return over the past six months. This upward trend suggests that Daily's purchase timing may be strategic, capitalizing on the company's positive market performance.
InvestingPro data reveals that i3 Verticals has a market capitalization of $569.83 million, positioning it as a mid-cap player in the payment solutions space. The company's impressive gross profit margin of 91.92% in the last twelve months indicates a strong ability to control costs and maintain profitability in its core operations.
An InvestingPro Tip highlights that analysts expect net income growth this year, which could explain Daily's confidence in increasing his stake. This positive outlook is further supported by another InvestingPro Tip indicating that analysts predict the company will be profitable this year, despite not being profitable over the last twelve months.
It's worth noting that InvestingPro offers 7 additional tips for i3 Verticals, providing investors with a more comprehensive analysis of the company's prospects. These insights can be particularly valuable given the stock's volatile price movements, as noted in another InvestingPro Tip.
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