Remitly Global (NASDAQ:RELY) Shares Down 5.7% - Here's Why

Key Points

• Remitly Global's shares fell by 5.7% to $19.10, with trading volume significantly below average at 520,613 shares.
• Recent analyst ratings show Wall Street Zen upgraded the stock from "hold" to "buy," with a consensus price target of $29.00.
• For the last quarter, Remitly reported a revenue of $411.85 million, surpassing expectations, although it missed earnings per share estimates.

Remitly Global, Inc. (NASDAQ:RELY - Get Free Report) dropped 5.7% during trading on Wednesday . The company traded as low as $19.08 and last traded at $19.10. Approximately 520,613 shares traded hands during trading, a decline of 82% from the average daily volume of 2,972,082 shares. The stock had previously closed at $20.25.

Wall Street Analysts Forecast Growth

RELY has been the topic of a number of research analyst reports. JMP Securities lowered their price objective on shares of Remitly Global from $32.00 to $23.00 and set a "market outperform" rating on the stock in a research note on Monday. KeyCorp reiterated an "overweight" rating and set a $28.00 price objective (up previously from $27.00) on shares of Remitly Global in a research note on Thursday, August 7th. Finally, Wall Street Zen upgraded shares of Remitly Global from a "hold" rating to a "buy" rating in a research note on Sunday, September 7th. Eight research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $27.88.

Remitly Global Price Performance

The stock has a market capitalization of $3.44 billion, a P/E ratio of 277.88 and a beta of 0.13. The stock's fifty day moving average is $18.22 and its two-hundred day moving average is $19.84.

Remitly Global (NASDAQ:RELY - Get Free Report) last issued its earnings results on Wednesday, August 6th. The financial services provider reported $0.04 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.14). The business had revenue of $411.85 million for the quarter, compared to the consensus estimate of $384.59 million. Remitly Global had a return on equity of 2.31% and a net margin of 0.96%.The company's quarterly revenue was up 34.4% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.06) earnings per share. Analysts expect that Remitly Global, Inc. will post -0.04 EPS for the current year.

Insider Activity

In related news, Director Phillip John Riese sold 5,000 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $20.00, for a total value of $100,000.00. Following the completion of the transaction, the director owned 112,496 shares of the company's stock, valued at approximately $2,249,920. This trade represents a 4.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Pankaj Sharma sold 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $19.71, for a total transaction of $98,550.00. Following the completion of the transaction, the insider directly owned 186,926 shares of the company's stock, valued at $3,684,311.46. This represents a 2.61% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 79,360 shares of company stock worth $1,477,749. Company insiders own 7.50% of the company's stock.

Hedge Funds Weigh In On Remitly Global

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Townsquare Capital LLC boosted its stake in Remitly Global by 2.5% in the 1st quarter. Townsquare Capital LLC now owns 18,903 shares of the financial services provider's stock worth $393,000 after purchasing an additional 459 shares during the period. Xponance Inc. lifted its position in Remitly Global by 4.8% in the 1st quarter. Xponance Inc. now owns 11,391 shares of the financial services provider's stock worth $237,000 after buying an additional 518 shares in the last quarter. California State Teachers Retirement System lifted its position in Remitly Global by 0.5% in the 2nd quarter. California State Teachers Retirement System now owns 135,843 shares of the financial services provider's stock worth $2,550,000 after buying an additional 679 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in Remitly Global by 40.2% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 4,474 shares of the financial services provider's stock worth $84,000 after buying an additional 1,282 shares in the last quarter. Finally, Cetera Investment Advisers lifted its position in Remitly Global by 12.0% in the 2nd quarter. Cetera Investment Advisers now owns 12,025 shares of the financial services provider's stock worth $226,000 after buying an additional 1,286 shares in the last quarter. Institutional investors and hedge funds own 74.25% of the company's stock.

About Remitly Global

Remitly Global, Inc provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.