Pagaya Technologies Ltd (NASDAQ: PGY)’s stock price has decreased by -1.33 compared to its previous closing price of 10.50. However, the company has seen a 20.19% increase in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-14 that I believe Pagaya Technologies is overvalued, with negligible free cash flow and a balance sheet riddled with restrictions, making it a sell. Despite Pagaya’s earnings, EBITDA, and cash flow, its free cash flow remains minimal, raising concerns about its financial health. PGY’s share count increased by 12% y/y while revenues grew by 21% y/y, puzzling investors about the company’s true value.
Is It Worth Investing in Pagaya Technologies Ltd (NASDAQ: PGY) Right Now?
The 36-month beta value for PGY is at 6.18. Analysts have varying views on the stock, with 5 analysts rating it as a “buy,” 2 rating it as “overweight,” 3 as “hold,” and 0 as “sell.”
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
The public float for PGY is 37.84M, and currently, shorts hold a 15.35% of that float. The average trading volume for PGY on November 27, 2024 was 2.09M shares.
PGY’s Market Performance
The stock of Pagaya Technologies Ltd (PGY) has seen a 20.19% increase in the past week, with a -18.04% drop in the past month, and a -20.67% fall in the past quarter. The volatility ratio for the week is 6.72%, and the volatility levels for the past 30 days are at 8.80% for PGY. The simple moving average for the past 20 days is -5.33% for PGY’s stock, with a -15.78% simple moving average for the past 200 days.
Analysts’ Opinion of PGY
Many brokerage firms have already submitted their reports for PGY stocks, with Oppenheimer repeating the rating for PGY by listing it as a “Outperform.” The predicted price for PGY in the upcoming period, according to Oppenheimer is $12 based on the research report published on October 01, 2024 of the current year 2024.
The Benchmark Company, on the other hand, stated in their research note that they expect to see PGY reach a price target of $21. The rating they have provided for PGY stocks is “Buy” according to the report published on August 26th, 2024.
Keefe Bruyette gave a rating of “Outperform” to PGY, setting the target price at $23 in the report published on June 17th of the current year.
PGY Trading at -6.48% from the 50-Day Moving Average
After a stumble in the market that brought PGY to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -49.47% of loss for the given period.
Volatility was left at 8.80%, however, over the last 30 days, the volatility rate increased by 6.72%, as shares sank -13.67% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -19.13% lower at present.
During the last 5 trading sessions, PGY rose by +20.19%, which changed the moving average for the period of 200-days by -27.45% in comparison to the 20-day moving average, which settled at $10.94. In addition, Pagaya Technologies Ltd saw -37.44% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at PGY starting from Torraco Nicole, who sale 2,371 shares at the price of $8.92 back on Nov 15 ’24. After this action, Torraco Nicole now owns 9,487 shares of Pagaya Technologies Ltd, valued at $21,161 using the latest closing price.
NICOLE TORRACO, the Director of Pagaya Technologies Ltd, proposed sale 2,371 shares at $9.47 during a trade that took place back on Nov 15 ’24, which means that NICOLE TORRACO is holding shares at $22,453 based on the most recent closing price.
Stock Fundamentals for PGY
Current profitability levels for the company are sitting at:
- 0.03 for the present operating margin
- 0.39 for the gross margin
The net margin for Pagaya Technologies Ltd stands at -0.19. The total capital return value is set at 0.03. Equity return is now at value -35.64, with -13.73 for asset returns.
Based on Pagaya Technologies Ltd (PGY), the company’s capital structure generated 0.59 points at debt to capital in total, while cash flow to debt ratio is standing at 0.09.
Currently, EBITDA for the company is -24.4 million with net debt to EBITDA at 9.54. When we switch over and look at the enterprise to sales, we see a ratio of 1.38. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.17.
Conclusion
In conclusion, Pagaya Technologies Ltd (PGY) has had a bad performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
