Paysign chief payments officer sells shares worth over $133k By Investing.com

Paysign, Inc. (NASDAQ:PAYS) disclosed a recent transaction by Chief Payments Officer Matthew Louis Lanford, who sold a significant amount of company stock. The transaction was executed on August 5, 2024, and reported in a filing with the Securities and Exchange Commission on August 6.

Lanford sold 29,340 shares of Paysign common stock at a weighted average price of $4.5407 per share, totaling approximately $133,224. The shares were sold in multiple transactions at prices ranging from $4.1801 to $5.0401. Following the sale, Lanford’s direct holdings in the company amount to 135,091 shares.

The filing included a footnote indicating that the sale was conducted to satisfy tax withholding obligations related to the vesting of restricted stock. This detail suggests that the transaction was part of Lanford’s compensation plan and not necessarily indicative of his outlook on the company’s future performance.

As is customary, the filing also noted that Lanford is prepared to provide more detailed information about the number of shares sold at each price point within the specified range, should there be a request from Paysign, its security holders, or the SEC staff.

Investors and market watchers often look to insider buying and selling as a signal of executive confidence in a company’s prospects. While sales to cover tax obligations are a routine part of stock-based compensation, they can still provide insights into the actions of a company’s top executives.

In other recent news, Paysign Inc. has reported robust growth for the first quarter of 2024, with a notable surge in both revenue and adjusted EBITDA. The company’s revenue rose to $13.2 million, a 30% increase year-over-year, while adjusted EBITDA jumped by 135% to $1.7 million. The growth was primarily driven by the expansion of Paysign’s patient affordability business, which saw a 305% increase in revenue, and its plasma donor compensation business, which experienced an 11% revenue increase to $10.4 million.

These recent developments indicate a positive trajectory for Paysign. The company has expressed optimism about its future prospects, planning to add 15 to 25 new plasma centers throughout 2024, and is working with over 40 pharmaceutical companies, securing repeat business from larger manufacturers. Despite not providing specific numbers for business growth in the current year, Paysign anticipates further expansion and value creation for its shareholders, eyeing a total addressable market estimated to be over $500 million.

InvestingPro Insights

Paysign, Inc. (NASDAQ:PAYS) has recently been under the investor’s microscope due to executive stock transactions, and current data from InvestingPro provides a broader financial context for these moves. With a market capitalization of $246.56 million, Paysign is a company that has experienced significant price volatility. Over the last week, the stock has seen a substantial decrease of 13.13% in its total return, which aligns with the recent insider sale.

InvestingPro Tips for Paysign highlight that the company is trading at a high earnings multiple, with a P/E ratio of 31.58, and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 32.97. This suggests that investors may be expecting higher future earnings growth, despite the company’s net income being expected to drop this year. However, it’s worth noting that Paysign has shown a strong return over the last month, with an 18.41% increase in price total return, and an even more impressive 147.59% return over the past year.

The company’s revenue growth has been robust, with a 26.45% increase over the last twelve months as of Q2 2024. This is further supported by a quarterly revenue growth of 29.8% for Q2 2024. Despite this growth, the operating income margin remains low at 1.49%, which could be a point of concern for potential investors.

For those interested in deeper analysis, there are 11 additional InvestingPro Tips available, which can provide more nuanced insights into Paysign’s financial health and future prospects. These tips can be accessed through the dedicated InvestingPro platform at https://www.investing.com/pro/PAYS.

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