Pagaya Technologies (NASDAQ:PGY) Shares Gap Down - What's Next?

Key Points

• Pagaya Technologies shares gapped down from a prior close of $20.47 to open at $17.02, before recovering to around $20.27.
• Analyst sentiment remains positive overall, with an average rating of “Buy” and a consensus price target of $31.12, despite one downgrade and a reduced target from TD Cowen.
• The company exceeded quarterly expectations, reporting $1.07 in EPS versus a $0.47 estimate and $390.49 million in revenue; however, insiders have sold about $2.02 million of stock over the past 90 days.

Pagaya Technologies Ltd. (NASDAQ:PGY - Get Free Report)'s stock price gapped down before the market opened on Thursday. The stock had previously closed at $20.47, but opened at $17.02. Pagaya Technologies shares last traded at $20.2720, with a volume of 616,834 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts have issued reports on PGY shares. Canaccord Genuity Group raised their price target on shares of Pagaya Technologies from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Friday, July 31st. B. Riley Financial increased their target price on shares of Pagaya Technologies from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Citizens Jmp raised their target price on Pagaya Technologies from $22.00 to $25.00 and gave the stock a "market outperform" rating in a research note on Friday, July 31st. Zacks Research downgraded Pagaya Technologies from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. Finally, TD Cowen lowered their price target on Pagaya Technologies from $26.00 to $25.00 and set a "buy" rating for the company in a research report on Tuesday, October 6th. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $31.12.

Pagaya Technologies Price Performance

The company has a market cap of $1.73 billion, a PE ratio of 15.15 and a beta of 5.50. The firm's 50-day moving average is $19.76 and its 200-day moving average is $16.63. The company has a quick ratio of 11.08, a current ratio of 11.08 and a debt-to-equity ratio of 1.12.

Pagaya Technologies (NASDAQ:PGY - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The company reported $1.07 EPS for the quarter, topping the consensus estimate of $0.47 by $0.60. The business had revenue of $390.49 million during the quarter, compared to analyst estimates of $382.10 million. Pagaya Technologies had a net margin of 9.12% and a return on equity of 51.56%. Pagaya Technologies's quarterly revenue was up 11.5% compared to the same quarter last year. During the same period last year, the business posted $1.02 earnings per share. On average, equities analysts anticipate that Pagaya Technologies Ltd. will post 3.36 EPS for the current year.

Insider Activity

In related news, CAO Cory Vieira sold 2,170 shares of Pagaya Technologies stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $17.04, for a total transaction of $36,976.80. Following the completion of the transaction, the chief accounting officer directly owned 25,160 shares of the company's stock, valued at $428,726.40. This trade represents a 7.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Tami Rosen sold 1,986 shares of the company's stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $17.83, for a total transaction of $35,410.38. Following the completion of the sale, the director owned 13,414 shares in the company, valued at approximately $239,171.62. This trade represents a 12.90% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 98,117 shares of company stock worth $2,019,059. Corporate insiders own 41.99% of the company's stock.

Hedge Funds Weigh In On Pagaya Technologies

Large investors have recently made changes to their positions in the business. First Bancorp Inc ME purchased a new position in Pagaya Technologies in the second quarter worth about $36,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Pagaya Technologies during the second quarter valued at approximately $37,000. Allworth Financial LP grew its holdings in shares of Pagaya Technologies by 300.4% during the second quarter. Allworth Financial LP now owns 3,592 shares of the company's stock valued at $66,000 after buying an additional 2,695 shares during the last quarter. GK Wealth Management LLC bought a new stake in shares of Pagaya Technologies during the third quarter valued at approximately $67,000. Finally, State of Wyoming raised its holdings in Pagaya Technologies by 150.3% in the 1st quarter. State of Wyoming now owns 6,532 shares of the company's stock worth $76,000 after acquiring an additional 3,922 shares during the last quarter. 57.14% of the stock is currently owned by hedge funds and other institutional investors.

About Pagaya Technologies

Pagaya Technologies Ltd. is a financial technology company that uses artificial intelligence and machine learning to help financial institutions expand access to credit and other financial products. Its technology platform analyzes large volumes of data to evaluate assets, identify investment opportunities and support lending decisions.

The company works with banks, lenders and other financial institutions, as well as institutional investors. Through its network-based platform, Pagaya helps partners originate loans and other assets while connecting those assets with institutional funding and capital markets solutions.

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