Remitly Global (NASDAQ:RELY) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Remitly Global from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $27.78.
• Remitly reported strong quarterly results, including $0.93 in EPS versus the $0.12 consensus estimate and revenue of $495.16 million, up 20.2% year over year.
• Institutional ownership increased significantly, with major new stakes from BlackRock and Generation Investment Management; however, insiders sold 473,238 shares worth approximately $11.75 million over the past three months.

Remitly Global (NASDAQ:RELY - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday, Zacks reports.

Several other equities research analysts have also recently issued reports on RELY. Cantor Fitzgerald raised their target price on shares of Remitly Global from $28.00 to $30.00 and gave the stock an "overweight" rating in a research report on Monday, August 10th. The Goldman Sachs Group lifted their price target on shares of Remitly Global from $27.00 to $30.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Monness Crespi & Hardt reissued a "buy" rating on shares of Remitly Global in a research note on Thursday, August 6th. KeyCorp increased their target price on Remitly Global from $28.00 to $33.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Finally, Citigroup reiterated an "outperform" rating on shares of Remitly Global in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $27.78.

Remitly Global Stock Performance

Shares of RELY opened at $23.20 on Monday. The company has a market capitalization of $4.91 billion, a price-to-earnings ratio of 16.69 and a beta of 0.39. The company's 50 day simple moving average is $23.91 and its 200 day simple moving average is $21.78. Remitly Global has a 1 year low of $12.08 and a 1 year high of $27.48.

Remitly Global (NASDAQ:RELY - Get Free Report) last released its earnings results on Wednesday, August 5th. The financial services provider reported $0.93 EPS for the quarter, topping the consensus estimate of $0.12 by $0.81. Remitly Global had a net margin of 16.85% and a return on equity of 33.33%. The firm had revenue of $495.16 million during the quarter, compared to analysts' expectations of $486.25 million. During the same period in the previous year, the company earned $0.03 EPS. Remitly Global's revenue for the quarter was up 20.2% on a year-over-year basis. Equities analysts expect that Remitly Global will post 0.85 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Joshua Hug sold 5,500 shares of the stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $25.03, for a total value of $137,665.00. Following the completion of the sale, the director owned 2,664,389 shares in the company, valued at approximately $66,689,656.67. This trade represents a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vikas Mehta sold 25,000 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $26.15, for a total value of $653,750.00. Following the sale, the chief financial officer owned 943,735 shares in the company, valued at approximately $24,678,670.25. The trade was a 2.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 473,238 shares of company stock valued at $11,746,510. 6.53% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Remitly Global during the 2nd quarter worth $410,752,000. Generation Investment Management LLP purchased a new position in Remitly Global in the 2nd quarter valued at about $109,637,000. Bank of America Corp DE grew its stake in shares of Remitly Global by 471.7% during the first quarter. Bank of America Corp DE now owns 5,153,726 shares of the financial services provider's stock valued at $80,759,000 after acquiring an additional 4,252,294 shares in the last quarter. Lead Edge Capital Management LLC purchased a new stake in shares of Remitly Global during the second quarter worth about $60,232,971. Finally, Dimensional Fund Advisors LP increased its position in shares of Remitly Global by 12.6% during the first quarter. Dimensional Fund Advisors LP now owns 3,136,288 shares of the financial services provider's stock worth $49,142,000 after acquiring an additional 350,595 shares during the last quarter. 74.25% of the stock is currently owned by hedge funds and other institutional investors.

Remitly Global Company Profile

Remitly Global, Inc is a digital financial services company that provides international money transfer services through its mobile application and website. The company enables customers to send funds across borders, with recipients able to receive money through bank deposits, mobile wallets, cash pickup locations and, in select markets, home delivery.

Remitly's platform is designed to offer a convenient alternative to traditional remittance services, with features such as transfer tracking, multiple delivery options and customer support.

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