SEATTLE—Matthew B. Oppenheimer, Chief Executive Officer of Remitly Global, Inc. (NASDAQ:RELY), recently sold shares of the company's common stock amounting to approximately $586,983. The sales took place over two days, November 13 and 14, with prices ranging from $19.82 to $20.42 per share.
On November 13, Oppenheimer sold 14,591 shares at an average price of $20.42. The following day, he sold an additional 14,583 shares at an average price of $19.82. These transactions were executed automatically under a pre-established Rule 10b5-1 trading plan.
Following these sales, Oppenheimer retains ownership of 4,431,594 shares of Remitly's common stock. Additionally, he transferred 71,429 shares as gifts to charitable organizations on November 15. These transactions reflect Oppenheimer's ongoing management of his equity holdings in the company.
In other recent news, Remitly Global Inc. demonstrated robust financial performance in the third quarter of 2024, reporting a 39% surge in revenue to $336.5 million. The company also saw a significant increase in active users, up by 35% to 7.3 million, and a 42% rise in send volume to $14.5 billion. KeyBanc Capital Markets responded to these results by raising its price target for Remitly from $20 to $21, while maintaining an Overweight rating on the stock.
The company's favorable third-quarter results were driven by foreign exchange-related tailwinds, which led to increased send activity and revenue outperformance. Adjusted EBITDA gains were also noted, driven by transaction margin expansion, strong revenue performance, and lower-than-expected marketing expenses.
Looking forward, Remitly has provided cautious guidance for fiscal year 2025, forecasting low- to mid-20s percentage growth. This conservatism is designed to account for the normalization of the foreign exchange impact. In response, KeyBanc has revised its fiscal year 2024 revenue and adjusted EBITDA estimates upwards, while slightly lowering its fiscal year 2025 revenue growth prediction to 24% year-over-year.
Despite these developments, Remitly expects a sequential decline in the gross take rate due to transaction size and currency fluctuations. These are among the recent developments for Remitly, as reported in their latest earnings call.
InvestingPro Insights
Remitly Global, Inc. (NASDAQ:RELY) has shown strong performance in recent months, with InvestingPro data indicating a 42.46% price return over the past month and a 40.64% return over the last three months. This upward trend aligns with CEO Matthew B. Oppenheimer's recent stock sales, which may be part of a planned diversification strategy.
Despite the positive stock performance, InvestingPro Tips highlight that Remitly is not currently profitable over the last twelve months, with a P/E ratio of -59.4. However, analysts predict the company will be profitable this year, suggesting potential for future growth.
The company's revenue growth is noteworthy, with a 35.18% increase in the last twelve months and a 39.27% quarterly growth. This robust top-line expansion underscores Remitly's strong market position in the global remittance sector.
It's worth noting that Remitly is trading at a high Price / Book multiple of 6.17, which may indicate investor optimism about the company's future prospects. However, the RSI suggests the stock is in overbought territory, which investors should consider when evaluating their positions.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Remitly, providing a more comprehensive view of the company's financial health and market position.
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