In a recent transaction, a significant shareholder of Paysign, Inc. (NASDAQ:PAYS), Daniel Spence, has sold a portion of his holdings in the company. The sale, which occurred on September 27, 2024, involved 100,000 shares of common stock at a price of $3.605 per share, totaling over $360,500.
This sale was part of Paysign's stock buyback program, where the shares were purchased by the company at a price that was 90% of the volume-weighted average price of Paysign's common stock listed on the Nasdaq Global Market for the ten trading days ending on July 15, 2024. Following this transaction, Spence still retains a significant stake in the company with 9,090,000 shares remaining in his possession.
As a ten percent owner of the company, Spence's transactions are closely watched by investors for insights into insider sentiment towards the company's stock. It's worth noting that insider sales and purchases can be motivated by a variety of factors and do not necessarily signal a change in the company's future prospects or performance.
Paysign, a provider of business services, has not made any official statements regarding this transaction. Investors and analysts often review such insider trades to gain a better understanding of how the top stakeholders are engaging with their investment in the company.
In other recent news, Paysign Inc. reported robust growth in its Q2 2024 earnings call. The company's revenue for the quarter climbed to $14.3 million, marking a 30% increase from the previous year, while the adjusted EBITDA saw a significant 96% rise to reach $2.24 million. This growth was primarily driven by the patient affordability business, which experienced a 267% surge in revenue, contributing to 59% of the total revenue growth.
Paysign also raised its full-year 2024 revenue guidance to between $56.5 million and $58.5 million. The company anticipates that plasma revenues will make up about 78% of total revenue, with pharma revenue contributing around 20%. Gross profit margins are expected to be between 54% and 55%, with operating expenses forecasted to lie between $30 million and $32 million.
The company's outlook remains positive, with plans to expand its plasma donor compensation business by adding 5 to 10 new plasma centers by the end of the year. Paysign is also working with over 40 pharmaceutical companies and has a majority of new clients in their pipeline. Despite acknowledging the need for additional personnel to support their growth, the company remains confident in its operational cash flow to support future ambitions.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Paysign's financial position and market performance, providing context to Daniel Spence's recent stock sale. Despite the insider transaction, Paysign has demonstrated strong revenue growth, with a 26.45% increase over the last twelve months as of Q2 2024, reaching $53.61 million. This growth trend is further emphasized by a 29.8% quarterly revenue increase in Q2 2024.
The company's profitability metrics are also noteworthy. Paysign boasts a gross profit margin of 52.22% for the last twelve months, indicating efficient cost management. Additionally, the company's EBITDA has shown remarkable growth, surging by 138.62% over the same period.
However, investors should note that Paysign's stock has experienced recent volatility. An InvestingPro Tip highlights that the stock has taken a significant hit over the last week, with a 1-week price total return of -12.74%. This short-term decline contrasts with the stock's impressive 1-year price total return of 100.27%, suggesting potential for both risk and reward.
Another InvestingPro Tip indicates that Paysign is trading at a high Price / Book multiple of 7.25, which may be a consideration for value-oriented investors. This metric, combined with the recent stock performance, could provide context for Spence's decision to sell a portion of his holdings.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Paysign, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.