Remitly Global (NASDAQ:RELY) Shares Gap Up - Still a Buy?

Key Points

• Remitly Global shares opened at $19.50 after closing at $16.47, indicating a significant increase.
• Several analysts have raised their price targets, with Goldman Sachs now at $26.00 and JMP Securities at $32.00, maintaining a "buy" rating overall.
• Despite missing earnings estimates, the company reported a 34.4% increase in quarterly revenue year-over-year, totaling $411.85 million.

Remitly Global, Inc. (NASDAQ:RELY - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $16.47, but opened at $19.50. Remitly Global shares last traded at $19.43, with a volume of 3,200,508 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on RELY shares. The Goldman Sachs Group upped their price objective on shares of Remitly Global from $23.00 to $26.00 and gave the company a "buy" rating in a report on Thursday, May 8th. Monness Crespi & Hardt upped their price target on shares of Remitly Global from $30.00 to $32.00 and gave the company a "buy" rating in a research note on Thursday, May 8th. KeyCorp reissued an "overweight" rating and issued a $28.00 price target (up from $27.00) on shares of Remitly Global in a report on Thursday. JMP Securities reaffirmed a "market outperform" rating and issued a $32.00 target price on shares of Remitly Global in a research report on Thursday, April 10th. Finally, Barclays lifted their price target on Remitly Global from $24.00 to $27.00 and gave the stock an "overweight" rating in a report on Monday, May 12th. One investment analyst has rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $29.00.

Remitly Global Stock Performance

The company's 50 day moving average price is $18.69 and its 200-day moving average price is $20.93. The stock has a market cap of $3.84 billion, a P/E ratio of -628.13 and a beta of 0.12.

Remitly Global (NASDAQ:RELY - Get Free Report) last posted 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). Remitly Global had a negative net margin of 0.34% and a negative return on equity of 0.70%. The company had revenue of $411.85 million for the quarter, compared to analysts' expectations of $384.59 million. During the same period in the previous year, the firm earned ($0.06) EPS. The firm's quarterly revenue was up 34.4% compared to the same quarter last year. On average, analysts forecast that Remitly Global, Inc. will post -0.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Bora Chung sold 13,000 shares of the company's stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $22.76, for a total value of $295,880.00. Following the completion of the sale, the director owned 103,171 shares of the company's stock, valued at approximately $2,348,171.96. This represents a 11.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Phillip John Riese sold 5,000 shares of Remitly Global stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $20.34, for a total value of $101,700.00. Following the completion of the transaction, the director directly owned 102,257 shares in the company, valued at $2,079,907.38. This trade represents a 4.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 12,041,833 shares of company stock valued at $275,390,023 in the last three months. 7.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Remitly Global

A number of hedge funds have recently added to or reduced their stakes in the stock. Elequin Capital LP purchased a new position in shares of Remitly Global during the first quarter valued at about $30,000. BI Asset Management Fondsmaeglerselskab A S bought a new position in Remitly Global during the first quarter valued at $41,000. Exchange Traded Concepts LLC bought a new stake in shares of Remitly Global in the 1st quarter worth about $46,000. Caitong International Asset Management Co. Ltd purchased a new position in Remitly Global in the first quarter worth about $66,000. Finally, Flaharty Asset Management LLC purchased a new stake in Remitly Global during the first quarter valued at approximately $94,000. 74.25% of the stock is currently owned by hedge funds and other institutional investors.

Remitly Global Company Profile

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.

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