Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ:PGY) reported that its Vice President of Accounting and Financial Reporting Officer, Kim Nam Woo, completed a sale of company shares on October 2, 2024. The transaction involved the sale of 171 Class A Ordinary Shares at a price of $9.90 per share, amounting to a total of $1,692. This sale was conducted to satisfy tax withholding obligations related to the vesting of a compensatory award, as noted in the accompanying footnotes of the filing.
The sale took place following the recent vesting of restricted stock units (RSUs) as part of the executive's compensation package. The RSUs vested in accordance with a schedule outlined in the footnotes, with a portion having vested earlier in the year and additional portions set to vest in quarterly installments starting April 1, 2024.
While the sale has been disclosed, Kim Nam Woo also acquired 417 Class A Ordinary Shares on October 1, 2024, through the vesting of RSUs. The price per share for the acquisition was listed as $0.0, indicating that these shares were granted as part of the executive's compensation plan and not purchased on the open market. Following these transactions, Kim Nam Woo's holdings in Pagaya Technologies have adjusted to reflect the recent changes.
Pagaya Technologies, a company operating within the financial services sector, is known for leveraging technology to analyze data and automate operations. The company's business address is located in Tel Aviv, with an additional mailing address in New York.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's current valuation and future prospects. The recent activity by a Pagaya Technologies executive may be of interest to current and potential shareholders as they assess the company's performance and leadership's stake in its success.
In other recent news, Pagaya Technologies Ltd. reported strong Q2 2024 earnings, with a network volume of $2.3 billion and a record $50 million in adjusted EBITDA, despite a net loss of $75 million due to share-based compensation and fair value adjustments. B.Riley adjusted its outlook on Pagaya Tech, reducing the price target to $36 from the previous $48, while maintaining a Buy rating. The firm anticipates a significant decrease in the company's cost of capital and funding, which could lead to annual interest expense savings of $30 million.
In addition, Pagaya Technologies signed a $1 billion forward flow agreement with Castlelake and achieved a AAA rating on its personal loan ABS program. The company also entered into a Warrant Agreement with an affiliate of Castlelake, granting warrants to purchase its Class A Ordinary Shares as consideration for Castlelake's commitment to fund certain loan amounts monthly.
There have been recent executive transitions, with Scott Bower stepping down as the principal accounting officer and Nam Woo Kim taking over on an interim basis. Rajinder Singh, a veteran in the banking and financial services industry, has been appointed as the new Chief Risk Officer.
Finally, Canaccord Genuity reduced the price target for Pagaya Tech shares to $32 due to a delay in the HARMONY study, while maintaining a Buy rating. Benchmark also initiated coverage of Pagaya shares with a Buy rating, projecting that the company's potential to self-fund its growth may lead to GAAP net income profitability by 2025.
InvestingPro Insights
Pagaya Technologies Ltd. (NASDAQ:PGY) has been experiencing some volatility in its stock price, which aligns with the recent insider transaction. According to InvestingPro data, the company's stock has seen a significant decline, with a 27.71% drop in the past month and a 26.76% decrease over the last three months. This downward trend might provide context for the timing of the executive's share sale, albeit for tax purposes.
Despite the recent price decline, InvestingPro Tips highlight that 4 analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about the company's future performance. This could be particularly relevant given that Pagaya is currently trading at a low revenue valuation multiple, which might interest value-oriented investors.
The company's financials show mixed signals. While Pagaya has not been profitable over the last twelve months, with a negative P/E ratio of -5.54, it has demonstrated strong revenue growth. The revenue for the last twelve months as of Q2 2023 stood at $925.42 million, with a notable year-over-year growth rate of 18.78%. Moreover, the quarterly revenue growth in Q2 2023 was even more impressive at 27.98%.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for Pagaya Technologies, which could provide valuable perspective on the company's financial health and market position.
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