NEW YORK - Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ: PGY), a global technology firm specializing in artificial intelligence infrastructure for the financial ecosystem, has announced a reverse stock split at a ratio of 1-for-12 to commence at the opening of the market on Friday, March 8, 2024. The company's ordinary shares will trade on a split-adjusted basis under the existing ticker symbol "PGY" with a new CUSIP number.
This strategic move, approved by shareholders on February 15, 2024, aims to enhance the stock's marketability to the U.S. investment community and to increase the likelihood of inclusion in major U.S. equity indices, which is expected to improve trading liquidity for new investors.
At the time of the reverse split, every 12 existing shares will be automatically converted into one share, maintaining the same par value per share. No fractional shares will be issued; instead, they will be rounded down to the nearest whole number. The reverse split is designed to affect all shareholders uniformly and will not alter any shareholder's percentage of equity in the company, except for adjustments due to fractional shares.
Additionally, proportionate adjustments will be made to the shares underlying the company's outstanding warrants and stock options, as well as the company's equity incentive plans.
Following the reverse stock split, the number of Pagaya's issued and outstanding Class A Ordinary Shares will decrease from approximately 605.1 million to about 50.4 million.
Pagaya, which has offices in New York and Tel Aviv, leverages machine learning, a vast data network, and sophisticated AI to provide consumer credit and residential real estate solutions. Its proprietary API and capital solutions are integrated into a network of partners.
The information in this article is based on a press release statement.
InvestingPro Insights
As Pagaya Technologies Ltd. (NASDAQ: PGY) implements a reverse stock split to potentially enhance its appeal to investors, the company's financial metrics and analyst outlooks offer a glimpse into its current market position. With a market capitalization of approximately $1.11 billion and a notable revenue growth of 8.43% over the last twelve months as of Q4 2023, Pagaya demonstrates its ability to expand its financial footprint despite not being profitable over the same period.
An interesting point to consider is the substantial 37.84% return the stock has achieved over the last month, reflecting a strong short-term performance that could catch the eye of momentum investors. However, it's important to note that the stock has experienced significant volatility, with a 36.25% decline over the past six months, indicating a potentially higher risk profile for the stock.
InvestingPro Tips suggest that while Pagaya's stock price movements are quite volatile, two analysts have recently revised their earnings upwards for the upcoming period, signaling optimism about the company's future performance. Additionally, the company's liquid assets exceed its short-term obligations, providing it with a cushion to navigate financial uncertainties.
For those considering an investment in Pagaya, it's worth noting that the company does not pay a dividend, which may be a factor for income-focused investors. Meanwhile, those looking for more in-depth analysis and additional insights can find them on InvestingPro, which lists several more tips for Pagaya. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking the full range of expert analysis and data.
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