Pagaya Technologies (NASDAQ:PGY) Shares Gap Up - Here's What Happened

Key Points

• Pagaya Technologies gapped up premarket, opening at $13.66 vs. the prior close of $13.01 and last trading around $13.81 on volume of 774,291 shares (about a 6.3% rise).
• Wall Street sentiment is a Moderate Buy with a consensus target of $33.11 despite multiple recent price-target cuts from firms like Jefferies, Benchmark, Canaccord and Citi—most analysts still carry Buy ratings.
• Insider selling has occurred recently (president and CFO sales; 37,036 shares worth ~$411,577 in the last 90 days) alongside a recent quarterly EPS miss ($0.64 vs. $0.69) even as revenue slightly beat expectations; insiders own ~47.6% and institutional/hedge funds own ~57.1% of the stock.

Shares of Pagaya Technologies Ltd. (NASDAQ:PGY - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $13.01, but opened at $13.66. Pagaya Technologies shares last traded at $13.8120, with a volume of 774,291 shares trading hands.

Wall Street Analysts Forecast Growth

PGY has been the subject of several analyst reports. Jefferies Financial Group decreased their price objective on Pagaya Technologies from $35.00 to $30.00 and set a "buy" rating for the company in a report on Tuesday, February 10th. Freedom Capital raised Pagaya Technologies to a "strong-buy" rating in a report on Tuesday, February 3rd. Benchmark cut their price target on Pagaya Technologies from $48.00 to $33.00 and set a "buy" rating for the company in a research note on Tuesday, February 10th. Canaccord Genuity Group cut their price target on Pagaya Technologies from $39.00 to $32.00 and set a "buy" rating for the company in a research note on Tuesday, February 10th. Finally, Citigroup cut their price target on Pagaya Technologies from $40.00 to $32.00 and set a "buy" rating for the company in a research note on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $33.11.

Pagaya Technologies Trading Up 6.3%

The company has a debt-to-equity ratio of 1.22, a quick ratio of 10.55 and a current ratio of 10.55. The company has a 50 day moving average of $12.15 and a two-hundred day moving average of $20.28. The stock has a market cap of $1.14 billion, a PE ratio of 15.59 and a beta of 5.74.

Pagaya Technologies (NASDAQ:PGY - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $0.69 by ($0.05). Pagaya Technologies had a net margin of 6.25% and a return on equity of 44.24%. The business had revenue of $326.40 million during the quarter, compared to analysts' expectations of $323.83 million. During the same quarter in the prior year, the firm earned $0.10 EPS. Sell-side analysts anticipate that Pagaya Technologies Ltd. will post 0.88 earnings per share for the current fiscal year.

Insider Activity at Pagaya Technologies

In related news, President Sanjiv Das sold 9,702 shares of Pagaya Technologies stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $10.99, for a total value of $106,624.98. Following the completion of the transaction, the president owned 144,034 shares in the company, valued at $1,582,933.66. The trade was a 6.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Evangelos Perros sold 13,004 shares of the business's 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 sale, the chief financial officer owned 122,174 shares of the company's stock, valued at approximately $1,385,453.16. This trade represents a 9.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 37,036 shares of company stock worth $411,577 in the last 90 days. Corporate insiders own 47.59% of the company's stock.

Institutional Investors Weigh In On Pagaya Technologies

Large investors have recently bought and sold shares of the company. Federated Hermes Inc. increased its stake in Pagaya Technologies by 40.8% during the 3rd quarter. Federated Hermes Inc. now owns 600,140 shares of the company's stock worth $17,818,000 after buying an additional 174,033 shares in the last quarter. Divisadero Street Capital Management LP increased its stake in Pagaya Technologies by 79.8% during the 3rd quarter. Divisadero Street Capital Management LP now owns 416,919 shares of the company's stock worth $12,378,000 after buying an additional 185,000 shares in the last quarter. Allspring Global Investments Holdings LLC increased its stake in Pagaya Technologies by 3,179.4% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 426,089 shares of the company's stock worth $9,493,000 after buying an additional 413,096 shares in the last quarter. Hamilton Lane Advisors LLC purchased a new stake in Pagaya Technologies during the 3rd quarter worth approximately $12,097,000. Finally, Zweig DiMenna Associates LLC purchased a new stake in Pagaya Technologies during the 3rd quarter worth approximately $5,525,000. 57.14% of the stock is currently owned by hedge funds and other institutional investors.

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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