MoneyLion Inc. (NYSE:ML) reported that its President, CFO, and Treasurer, Richard Correia, has sold a significant amount of company stock, totaling over $2.5 million. The transactions, which took place on June 12, 2024, involved the sale of shares at prices ranging from $88.38 to $92.02.
Correia, who has been serving as an executive officer of the financial services company, sold a total of 24,175 shares of MoneyLion's Class A Common Stock through a series of transactions. According to the filing, the sales were executed at varying prices, with the weighted average prices per share disclosed in the footnotes of the report. The reported sales were made pursuant to a written trading plan that meets the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934, which was adopted by Correia on March 13, 2024.
The sales took place in multiple transactions, with the first batch of 1,104 shares sold at an average price of $88.38, followed by 9,228 shares at $89.56, 10,538 shares at $90.49, 6,617 shares at $91.48, and the final batch of 1,188 shares at $92.02. The total proceeds from these sales amounted to approximately $2,592,256.
Following these transactions, Correia still holds a substantial number of shares in MoneyLion Inc., including restricted stock units and performance share units previously reported. These units represent a contingent right to receive additional shares of Class A Common Stock.
Investors often monitor the buying and selling activities of company executives as they can provide insights into the company's performance and executives' confidence in the firm's future. MoneyLion Inc. has not released any official statement regarding the transactions or their implications for the company's outlook.
The sales were publicly disclosed in accordance with SEC regulations, and detailed information about the specific number of shares sold at each price point is available upon request from the SEC, MoneyLion Inc., or any shareholder of the company.
In other recent news, MoneyLion Inc. reported a record-breaking first quarter for 2024, with a 29% year-over-year increase in quarterly revenue, reaching $121 million. The company also experienced a significant surge in its customer base, growing by 98% to a total of 15.5 million customers. Additionally, MoneyLion's adjusted EBITDA hit a record at $23 million, a 19.4% margin.
These recent developments also include the election of three Class III directors, Matt Derella, Annette Nazareth, and Michael Paull, and the ratification of RSM US LLP as the company's independent registered public accounting firm for the upcoming fiscal year. The company projects continued growth in revenue and adjusted EBITDA for the upcoming quarter, expecting Q2 revenue to be between $125 million and $130 million, and adjusted EBITDA between $17 million and $20 million.
Despite market conditions affecting conversion rates in the lending business, MoneyLion remains confident in maintaining a strong EBITDA margin. These developments are part of MoneyLion's strategic focus on product expansion and strategic partnerships, aiming to become a unified consumer platform.
InvestingPro Insights
Amidst the news of executive stock sales at MoneyLion Inc., investors may be seeking additional data to better understand the company's current financial position and future prospects. Here are some key metrics and insights from InvestingPro that could provide valuable context:
MoneyLion's market capitalization stands at $992.49 million, reflecting the market's valuation of the company as of the latest data. Despite a challenging P/E ratio of -31.95, indicating the stock is trading at a premium relative to its earnings, the company has experienced significant revenue growth over the last twelve months, with a 23.6% increase as of Q1 2024. This growth is even more pronounced on a quarterly basis, with a 29.18% revenue growth reported in Q1 2024.
An InvestingPro Tip worth noting is that MoneyLion's stock has demonstrated high price volatility. This could be particularly relevant for investors in light of the recent insider sales. Moreover, while the company was not profitable over the last twelve months, analysts predict that MoneyLion will become profitable this year, which could be a turning point for the company's financial health.
Investors looking for growth might be encouraged by the stock's strong return over the last three months, with a 39.39% price total return, and an even more impressive 656.15% return over the last year. However, it's important to note that MoneyLion does not pay a dividend to shareholders, which might be a consideration for those seeking income-generating investments.
For those interested in further insights, there are additional InvestingPro Tips available for MoneyLion Inc. at https://www.investing.com/pro/ML. And for a limited time, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment tips and data.
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