Mark Newcomer, the CEO of Paysign, Inc. (NASDAQ:PAYS), has recently sold a portion of his company shares, according to the latest filings. The transaction, which took place on September 13, 2024, involved the sale of 1,500 shares at a price of $4.50 each, totaling $6,750.
The sale was conducted under a Rule 10b5-1 trading plan, which Newcomer had adopted on June 12, 2024. Such plans allow company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading. The plan is set to remain in effect until June 11, 2025, and it allows for transactions involving up to 1.2 million shares of common stock.
Following the sale, the CEO still maintains a significant stake in the company, with 9,547,386 shares of Paysign common stock remaining in his possession. Investors often keep a close watch on insider transactions as they may provide insights into executives' perspectives on their company's future prospects.
Paysign, based in Henderson, Nevada, operates within the business services sector, providing various payment solutions and services. The company, formerly known as 3PEA International, Inc., continues to evolve and expand its offerings in the financial technology space.
In other recent news, Paysign Inc. has showcased robust growth in its Q2 2024 earnings report. The company's revenue experienced a 30% year-over-year increase, reaching $14.3 million. This surge was primarily driven by the patient affordability business, which saw an impressive 267% revenue growth, contributing 59% to the total revenue increase. Adjusted EBITDA also escalated, showing a 96% rise to $2.24 million.
Paysign Inc. has revised its full-year 2024 revenue guidance upwards, now expecting total revenues to be between $56.5 million and $58.5 million. As part of their growth strategy, the company plans to expand its plasma donor compensation business by adding 5 to 10 new plasma centers by year's end. Gross profit margins are anticipated to be between 54% and 55%, with operating expenses forecasted between $30 million and $32 million.
Despite the need for additional personnel to support growth, which may impact operating expenses, Paysign remains optimistic about its future. The company is working with over 40 pharmaceutical companies and has a majority of new clients in their pipeline. These recent developments underscore Paysign's commitment to its mission of transforming healthcare payments.
InvestingPro Insights
Amidst the recent insider transactions at Paysign, Inc. (NASDAQ:PAYS), investors are keenly observing the company's financial metrics and market performance. As of the last twelve months ending in Q2 2024, Paysign's market capitalization stands at a modest $239.12 million, reflecting its standing in the business services sector. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 30.55, indicating that the stock is trading at a high earnings multiple compared to industry peers. This is further emphasized by an adjusted P/E ratio of 31.9, suggesting a premium valuation.
One of the InvestingPro Tips highlights that despite Paysign's high valuation, the net income is expected to drop this year. This forecast could be a critical factor for investors to consider as they analyze the CEO's recent sale of shares. On a more positive note, another InvestingPro Tip points out that the company has experienced a high return over the last year, with a one-year price total return of 124.0%. This impressive performance could be a sign of strong market confidence in Paysign's growth trajectory.
Additionally, Paysign's revenue growth has been robust, with an increase of 26.45% over the last twelve months as of Q2 2024. This growth is further underscored by a quarterly revenue growth of 29.8% for Q2 2024. The company's gross profit margin stands at a healthy 52.22%, indicating efficient management of its service costs relative to revenue.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available on InvestingPro that could provide further insights into Paysign's financial health and stock performance. These tips, alongside the real-time data, can help investors make more informed decisions in the context of the CEO's recent stock sale and the company's future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.