Pagaya Technologies (NASDAQ:PGY) Shares Gap Up After Strong Earnings

Key Points

• Shares gapped up after a stronger-than-expected earnings report, opening at $16.90 versus the prior close of $14.83 and most recently trading around $16.07 on volume of 2,936,873 shares.
• The company reported ($40.85) EPS for the quarter on revenue of $91.63 million, with a return on equity of 44.24% and a net margin of 6.25%.
• Analysts have trimmed price targets but the consensus remains a “Moderate Buy” with an average target of $33.11; insiders (including the CFO and President) have recently sold stock while institutional investors own about 57% of shares.

Pagaya Technologies Ltd. (NASDAQ:PGY - Get Free Report)'s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $14.83, but opened at $16.90. Pagaya Technologies shares last traded at $16.07, with a volume of 2,936,873 shares.

The company reported ($40.85) earnings per share (EPS) for the quarter. The firm had revenue of $91.63 million during the quarter. Pagaya Technologies had a return on equity of 44.24% and a net margin of 6.25%.

Analyst Upgrades and Downgrades

PGY has been the subject of a number of recent analyst reports. Benchmark cut their price objective on Pagaya Technologies from $48.00 to $33.00 and set a "buy" rating for the company in a research report on Tuesday, February 10th. Canaccord Genuity Group lowered their price target on Pagaya Technologies from $39.00 to $32.00 and set a "buy" rating on the stock in a research note on Tuesday, February 10th. Citigroup lowered their price target on Pagaya Technologies from $40.00 to $32.00 and set a "buy" rating on the stock in a research note on Thursday, February 12th. Jefferies Financial Group lowered their price objective on Pagaya Technologies from $35.00 to $30.00 and set a "buy" rating on the stock in a research note on Tuesday, February 10th. Finally, Zacks Research lowered Pagaya Technologies from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 2nd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $33.11.

Insider Activity

In related news, CFO Evangelos Perros sold 13,004 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $11.34, for a total value of $147,465.36. Following the completion of the transaction, the chief financial officer directly owned 122,174 shares in the company, valued at approximately $1,385,453.16. This represents a 9.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, President Sanjiv Das sold 9,702 shares of the firm's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $10.99, for a total value of $106,624.98. Following the sale, the president directly owned 144,034 shares of the company's stock, valued at approximately $1,582,933.66. This trade represents a 6.31% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 46,756 shares of company stock valued at $558,738. 47.59% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of PGY. Versant Capital Management Inc purchased a new stake in shares of Pagaya Technologies in the 3rd quarter valued at approximately $25,000. LSV Asset Management purchased a new position in shares of Pagaya Technologies during the 3rd quarter worth approximately $36,000. Root Financial Partners LLC acquired a new stake in Pagaya Technologies in the 4th quarter valued at approximately $27,000. Aster Capital Management DIFC Ltd raised its position in Pagaya Technologies by 351.9% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,392 shares of the company's stock valued at $29,000 after purchasing an additional 1,084 shares during the period. Finally, Transamerica Financial Advisors LLC purchased a new stake in Pagaya Technologies in the fourth quarter valued at approximately $30,000. Hedge funds and other institutional investors own 57.14% of the company's stock.

Pagaya Technologies Stock Up 5.5%

The company has a debt-to-equity ratio of 1.22, a current ratio of 10.55 and a quick ratio of 10.55. The business has a 50 day simple moving average of $12.28 and a 200 day simple moving average of $18.75. The company has a market capitalization of $1.29 billion, a price-to-earnings ratio of 17.80 and a beta of 5.42.

About Pagaya Technologies

Pagaya Technologies is a financial technology company that applies artificial intelligence and machine learning to the credit and asset management industries. Through its proprietary data-driven platform, Pagaya analyzes vast datasets from consumer credit portfolios to build predictive risk models, enabling institutional investors to gain access to alternative credit products. The company’s solutions streamline underwriting, optimize portfolio construction and facilitate the efficient securitization of consumer loans, credit card receivables and other asset classes.

Founded in 2016 and headquartered in New York, Pagaya has expanded its operations to serve financial institutions and asset managers primarily in the United States.

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