Remitly Global (NASDAQ:RELY) Stock Price Down 7.8% - Should You Sell?

Key Points

• Shares fell 7.8% to about $15.66 on Thursday, with ~2.35M shares traded—roughly 39% below the average session volume.
• Remitly beat the quarter (EPS $0.19 vs $0.02 estimate; revenue $442.2M, +25.7% YoY), but analysts still model a mixed near-term outlook with average FY EPS of -$0.04.
• Analysts are mostly bullish overall: the consensus rating is Buy with an average target of $22.78, and recent upgrades include Goldman raising its target to $20 and BofA initiating coverage at $18 (Buy).

Remitly Global, Inc. (NASDAQ:RELY - Get Free Report) shares traded down 7.8% on Thursday . The stock traded as low as $15.46 and last traded at $15.6640. 2,348,079 shares traded hands during mid-day trading, a decline of 39% from the average session volume of 3,864,936 shares. The stock had previously closed at $16.98.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Weiss Ratings upgraded Remitly Global from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, February 20th. Zacks Research raised Remitly Global from a "hold" rating to a "strong-buy" rating in a report on Tuesday, January 20th. Bank of America initiated coverage on Remitly Global in a research report on Tuesday, February 10th. They issued a "buy" rating and a $18.00 price target for the company. Citigroup reaffirmed an "outperform" rating on shares of Remitly Global in a research report on Thursday, February 19th. Finally, The Goldman Sachs Group increased their target price on shares of Remitly Global from $17.00 to $20.00 and gave the stock a "buy" rating in a report on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Remitly Global has an average rating of "Buy" and a consensus target price of $22.78.

Remitly Global Price Performance

The firm has a 50 day moving average of $14.48 and a 200-day moving average of $15.16. The company has a current ratio of 3.30, a quick ratio of 3.30 and a debt-to-equity ratio of 0.18. The company has a market cap of $3.29 billion, a P/E ratio of 50.33 and a beta of 0.06.

Remitly Global (NASDAQ:RELY - Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The financial services provider reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.17. Remitly Global had a return on equity of 8.87% and a net margin of 4.15%.The business had revenue of $442.18 million during the quarter, compared to the consensus estimate of $427.27 million. During the same period in the prior year, the company posted ($0.03) EPS. The firm's revenue for the quarter was up 25.7% compared to the same quarter last year. On average, equities research analysts predict that Remitly Global, Inc. will post -0.04 EPS for the current year.

Insider Transactions at Remitly Global

In other news, Director Ryno Blignaut sold 4,500 shares of Remitly Global stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $12.89, for a total value of $58,005.00. Following the sale, the director directly owned 32,576 shares of the company's stock, valued at approximately $419,904.64. The trade was a 12.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Pankaj Sharma sold 3,000 shares of the business's stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $16.35, for a total value of $49,050.00. Following the completion of the sale, the insider owned 215,830 shares in the company, valued at $3,528,820.50. This represents a 1.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 63,549 shares of company stock worth $1,094,256. 7.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. California State Teachers Retirement System raised its stake in Remitly Global by 0.5% during the second quarter. California State Teachers Retirement System now owns 135,843 shares of the financial services provider's stock valued at $2,550,000 after purchasing an additional 679 shares in the last quarter. Exchange Traded Concepts LLC raised its position in shares of Remitly Global by 29.9% during the 3rd quarter. Exchange Traded Concepts LLC now owns 3,098 shares of the financial services provider's stock valued at $50,000 after buying an additional 714 shares in the last quarter. Main Management ETF Advisors LLC lifted its holdings in shares of Remitly Global by 1.0% in the 4th quarter. Main Management ETF Advisors LLC now owns 96,309 shares of the financial services provider's stock valued at $1,329,000 after acquiring an additional 984 shares during the last quarter. Xponance Inc. grew its position in Remitly Global by 8.7% in the third quarter. Xponance Inc. now owns 13,291 shares of the financial services provider's stock worth $217,000 after acquiring an additional 1,060 shares in the last quarter. Finally, AlphaQuest LLC grew its position in Remitly Global by 34.4% in the third quarter. AlphaQuest LLC now owns 4,359 shares of the financial services provider's stock worth $71,000 after acquiring an additional 1,115 shares in the last quarter. 74.25% of the stock is owned by hedge funds and other institutional investors.

About Remitly Global

Remitly Global, Inc operates as a digital financial services company specializing in cross-border money transfers. Through its proprietary online platform and mobile applications, the company enables immigrants, expatriates and international workers to send remittances swiftly and securely to their families abroad. By focusing on fast deliverability and transparent pricing, Remitly seeks to streamline a process traditionally dominated by cash-based methods and legacy money transfer operators.

Founded in 2011 by Matt Oppenheimer and headquartered in Seattle, Washington, Remitly has grown from a startup into a publicly traded corporation listed on NASDAQ under the ticker RELY.

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