Pagaya Technologies Sees Unusually Large Options Volume (NASDAQ:PGY)

Key Points

• Pagaya Technologies saw unusually heavy call-option activity on Monday, with 5,820 contracts purchased—about 31% above its typical daily volume.
• Shares rose $2.19 to $21.46 during midday trading, while the company reported quarterly EPS of $0.73, beating estimates of $0.20; revenue increased 9.7% year over year to $317.94 million.
• Analysts maintain a consensus “Buy” rating with an average price target of $32.43, although insider activity was mixed as the CEO bought shares while a director sold stock under a Rule 10b5-1 plan.

Pagaya Technologies Ltd. (NASDAQ:PGY - Get Free Report) was the target of unusually large options trading on Monday. Stock investors purchased 5,820 call options on the company. This is an increase of approximately 31% compared to the typical daily volume of 4,451 call options.

Pagaya Technologies Price Performance

Shares of PGY traded up $2.19 during midday trading on Monday, reaching $21.46. The stock had a trading volume of 2,868,349 shares, compared to its average volume of 3,828,748. The company's 50-day moving average is $16.23 and its 200 day moving average is $14.95. Pagaya Technologies has a 12-month low of $10.40 and a 12-month high of $44.99. The company has a current ratio of 11.08, a quick ratio of 11.08 and a debt-to-equity ratio of 1.12. The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 15.78 and a beta of 5.33.

Pagaya Technologies (NASDAQ:PGY - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.73 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.53. The company had revenue of $317.94 million for the quarter, compared to analysts' expectations of $323.85 million. Pagaya Technologies had a return on equity of 51.56% and a net margin of 9.12%.Pagaya Technologies's revenue for the quarter was up 9.7% compared to the same quarter last year. During the same period last year, the firm posted $0.10 EPS. On average, equities analysts predict that Pagaya Technologies will post 2.92 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have commented on PGY. Citizens Jmp raised their price target on shares of Pagaya Technologies from $22.00 to $25.00 and gave the company a "market outperform" rating in a report on Friday. Zacks Research cut shares of Pagaya Technologies from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Texas Capital upgraded Pagaya Technologies to a "strong-buy" rating in a research report on Wednesday, June 10th. B. Riley Financial lifted their price objective on Pagaya Technologies from $32.00 to $36.00 and gave the company a "buy" rating in a research note on Friday. Finally, Weiss Ratings upgraded Pagaya Technologies from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, June 18th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Pagaya Technologies presently has a consensus rating of "Buy" and an average target price of $32.43.

Insiders Place Their Bets

In other news, CEO Gal Krubiner acquired 16,230 shares of the business's stock in a transaction dated Wednesday, June 24th. The stock was bought at an average cost of $15.43 per share, for a total transaction of $250,428.90. Following the completion of the transaction, the chief executive officer owned 555,906 shares of the company's stock, valued at $8,577,629.58. The trade was a 3.01% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Tami Rosen sold 9,944 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $15.20, for a total transaction of $151,148.80. Following the completion of the transaction, the director owned 37,544 shares of the company's stock, valued at $570,668.80. This trade represents a 20.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 58,090 shares of company stock worth $923,764 over the last quarter. Insiders own 41.99% of the company's stock.

Institutional Investors Weigh In On Pagaya Technologies

A number of hedge funds have recently made changes to their positions in PGY. Segall Bryant & Hamill LLC boosted its stake in shares of Pagaya Technologies by 81.0% in the 1st quarter. Segall Bryant & Hamill LLC now owns 118,459 shares of the company's stock valued at $1,380,000 after purchasing an additional 53,011 shares in the last quarter. Edgestream Partners L.P. raised its position in Pagaya Technologies by 353.2% in the 1st quarter. Edgestream Partners L.P. now owns 373,771 shares of the company's stock worth $4,354,000 after purchasing an additional 291,291 shares during the period. Royal Bank of Canada raised its position in Pagaya Technologies by 134.6% in the 1st quarter. Royal Bank of Canada now owns 35,940 shares of the company's stock worth $419,000 after purchasing an additional 20,623 shares during the period. Empowered Funds LLC lifted its stake in Pagaya Technologies by 4,562.7% in the first quarter. Empowered Funds LLC now owns 116,661 shares of the company's stock worth $1,359,000 after purchasing an additional 114,159 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its stake in Pagaya Technologies by 5.4% in the first quarter. The Manufacturers Life Insurance Company now owns 15,136 shares of the company's stock worth $176,000 after purchasing an additional 776 shares during the last quarter. 57.14% of the stock is currently owned by institutional investors.

Pagaya Technologies Company Profile

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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