In a recent transaction, Howard Dvorkin, director and significant shareholder of FlexShopper, Inc. (NASDAQ:FPAY), acquired additional shares of the company, investing a total of $20,023. The transactions took place over two consecutive days, with shares purchased at prices ranging from $1.20 to $1.23.
On June 25, 2024, Dvorkin bought 6,111 shares at an average price of $1.21. The following day, he further increased his stake by purchasing 10,524 shares at a weighted average price of $1.20. These purchases were part of multiple transactions within the stated price ranges.
Following these acquisitions, Dvorkin's direct ownership in FlexShopper, Inc. stands at 4,440,246 shares. It's worth noting that these shares are held of record by PITA Holdings, LLC, whose manager is Beta Investment Group, Inc., with Dvorkin serving as the President. However, Dvorkin has disclaimed beneficial ownership of the securities held by PITA except to the extent of his pecuniary interest.
Investors often keep a close eye on insider transactions like these, as they can provide insights into the executives' confidence in the company's future prospects. With this latest move, Dvorkin has reaffirmed his commitment to FlexShopper, a company specializing in equipment rental and leasing services.
In other recent news, FlexShopper showcased robust financial growth in the fourth quarter of 2023. The company reported a 7% increase in total fundings, a substantial 42% rise in net lease and loan revenues, and a dramatic turnaround in operating income, which reached $5.6 million. These recent developments were underscored by an over 300% surge in gross profit.
H.C. Wainwright maintained a Buy rating on FlexShopper and raised the price target to $2.50, following the company's strong Q4 performance. The firm revised its 2024 revenue projection for FlexShopper to $155.0 million and increased the adjusted EBITDA estimate for the full year of 2024 to $28.0 million. Preliminary estimates for 2025 predict a revenue of $173.0 million and an adjusted EBITDA of $33.0 million.
FlexShopper is transitioning its business model, evolving its website into a comprehensive retail platform while diversifying payment options and merchandise selection. The company also announced strategic partnerships and a new credit facility, aiming to expand its market presence and sustain profitable growth into 2024. These changes highlight FlexShopper's commitment to long-term profitability and market expansion.
InvestingPro Insights
Amidst the recent insider transactions, FlexShopper, Inc. (NASDAQ:FPAY) has shown a mix of financial indicators that investors may want to consider. According to InvestingPro data, the company's market capitalization stands at 26.76 million USD, reflecting its current valuation in the market. Despite a modest revenue growth of 4.57% over the last twelve months as of Q1 2024, the company's P/E ratio is at -3.19, indicating that investors are wary of its profitability prospects.
An InvestingPro Tip suggests that analysts are not expecting FlexShopper to be profitable this year, which could be a concern for potential investors. Additionally, the company's price/book ratio is relatively high at 4.2, suggesting that the stock might be overvalued compared to its book value. This aligns with another InvestingPro Tip that points out the company's valuation implies a poor free cash flow yield, which could be a red flag for those looking for strong cash-generating investments.
Despite these concerns, FlexShopper's liquid assets exceed its short-term obligations, which may provide some reassurance regarding the company's ability to meet its immediate financial liabilities. For investors interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into FlexShopper's financial health and stock performance.
To explore these additional tips and gain a more comprehensive understanding of FlexShopper's financial position, consider using the special coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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