Atlanticus Holdings Corp (NASDAQ:ATLC) has reported a recent transaction involving one of its directors, Deal W. Hudson (NYSE:HUD), who sold shares in the company. On September 16, 2024, Hudson sold 2,500 shares of Atlanticus Holdings at an average price of $31.35 per share, totaling $78,375.
The transaction was carried out in multiple trades, with prices ranging between $31.15 and $31.40. The price reported represents the weighted average sale price. Following this sale, Hudson still owns 64,955 shares of the company's common stock, maintaining a significant stake in the company.
Atlanticus Holdings Corp, based in Atlanta, Georgia, operates within the personal credit institutions sector. The company, formerly known as CompuCredit Holdings Corp, has been a part of the financial services industry under its current name since a name change in May 2009.
The sale by Hudson provides investors with insight into the trading activity of the company's insiders. Such transactions are closely watched as they can provide indications of an insider's perspective on the company's current valuation and future prospects.
Investors and interested parties can request more detailed information about the sale, including the number of shares sold at each price point, from Hudson, should they require it. This information can be provided in compliance with the obligations set by the Commission.
Atlanticus Holdings Corp and its representatives have not made any comments regarding the reasoning behind Hudson's stock sale. Hudson's remaining ownership in Atlanticus Holdings indicates continued alignment with the company's performance and shareholder interests.
"In other recent news, Atlanticus Holdings Corp. has been the focus of several analyst reviews and corporate actions. B.Riley has reiterated its Buy rating on Atlanticus shares, citing potential credit improvement, margin expansion, and sustained double-digit portfolio growth as key growth drivers. The firm's analyst also adjusted the earnings forecast for fiscal years 2024, 2025, and 2026, reflecting the volatility in accounting practices.
In financial moves, Atlanticus has priced its public add-on offering of $55 million in senior notes, adding to the previously released $57.25 million. The proceeds are intended for redeeming part of the Class B preferred units of a subsidiary or for general corporate purposes.
The company's first-quarter earnings for 2024 met expectations with a net income of $19.9 million. Despite new late fee rules introduced by the Consumer Financial Protection Bureau, Atlanticus implemented additional fees and new product features, projected to mitigate the new rules' effects by mid-2025.
Additionally, BTIG initiated coverage on Atlanticus, assigning the company's stock a Buy rating. The firm cites favorable macro trends in consumer finance as a key driver for Atlanticus's future growth. Meanwhile, despite regulatory challenges, Atlanticus has maintained its "Market Outperform" rating from JMP Securities, reflecting its strategic resilience."
InvestingPro Insights
Atlanticus Holdings Corp (NASDAQ:ATLC) has been making headlines not only due to the recent insider transaction but also because of its notable performance metrics and analyst insights. According to InvestingPro data, Atlanticus Holdings boasts a market capitalization of $516.36 million and has been trading at an attractive earnings multiple, with a P/E ratio currently at 6.79. This valuation presents a potentially compelling opportunity for value investors considering the company's price relative to its earnings.
InvestingPro Tips highlight that Atlanticus Holdings has experienced significant returns over the last week, with a price total return of 11.21%. This short-term performance is complemented by a strong return over the last three months, marked by a 24.29% price total return. Such impressive returns underscore the company's recent positive momentum in the market. Moreover, analysts predict that Atlanticus Holdings will be profitable this year, an expectation that might be factored into the stock's recent movements. It's worth noting that the company has not only been profitable over the last twelve months but also has had a high return over the last decade, displaying a history of strong financial performance.
The company's solid financial position is further supported by the fact that its liquid assets exceed short-term obligations, as per another InvestingPro Tip. This indicates a level of financial stability that could reassure investors of the company's ability to manage short-term liabilities.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available for Atlanticus Holdings Corp, providing further insights into its performance and valuation metrics. These can be explored at https://www.investing.com/pro/ATLC.
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