Mark Newcomer, the CEO of Paysign, Inc. (NASDAQ:PAYS), recently sold a significant number of shares in a series of transactions. According to a recent SEC filing, Newcomer sold a total of 100,000 shares over three consecutive days, from November 18 to November 20, 2024. The sales were executed at prices ranging from $3.2414 to $3.2701 per share, amounting to a total value of $325,410.
These transactions were carried out under a Rule 10b5-1 trading plan that Newcomer adopted on June 12, 2024. Following these sales, Newcomer still holds 9,236,886 shares of Paysign. The trading plan allows insiders of publicly traded corporations to set up a predetermined schedule for selling company stocks, helping them avoid potential accusations of insider trading.
In other recent news, Paysign, Inc. has reported a notable 23% revenue growth to $15.3 million in their third-quarter earnings call. The financial performance was particularly strong in its patient affordability business. In addition to this, Paysign also announced plans to expand its program offerings, including a new partnership with a leading pharmaceutical company. The company's adjusted EBITDA increased by 20.6% to $2.8 million. Despite facing challenges in the plasma business and ongoing legal expenses, Paysign maintains a positive outlook for the remainder of the year, projecting revenues between $56.5 million and $58.5 million and a net income guidance of $3 million to $3.5 million. Analysts noted the company's strong growth in the pharma segment, which is expected to continue into 2025. These are among the recent developments for Paysign, Inc.
InvestingPro Insights
The recent insider selling by Paysign's CEO Mark Newcomer comes amid a challenging period for the company's stock performance. According to InvestingPro data, Paysign's share price has fallen significantly over the last three months, with a 28.48% decline in the three-month price total return. This downward trend extends to a six-month decline of 30.67%, aligning with the InvestingPro Tip that the stock has taken a big hit over the last six months.
Despite these short-term challenges, Paysign's financials show some positive indicators. The company's revenue growth stands at 27.75% for the last twelve months as of Q3 2024, with a robust gross profit margin of 53.37%. An InvestingPro Tip highlights that Paysign has been profitable over the last twelve months, which is reflected in its positive EBITDA of $6.37 million and a remarkable EBITDA growth of 137.38% for the same period.
It's worth noting that while the stock is trading at a high Price / Book multiple of 6.2, analysts remain optimistic about Paysign's prospects. The fair value based on analyst targets is $7 per share, significantly higher than the current trading price. This suggests potential upside for investors willing to look past the recent stock performance.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 5 more InvestingPro Tips available for Paysign, which could provide valuable context for understanding the company's financial health and future prospects.
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