FlexShopper, Inc. (NASDAQ:FPAY) director Howard Dvorkin has recently increased his stake in the company through a series of stock purchases, investing a total of $15,620. The transactions, which took place over several days, demonstrate a continued commitment to the company by one of its key insiders.
On June 12, 2024, Dvorkin acquired 1,345 shares at a price of $1.19 per share. He followed up with additional purchases on June 13, buying 5,500 shares at $1.24 each, and on June 17, securing another 6,000 shares for $1.20 apiece. These transactions have bolstered his total holdings significantly.
FlexShopper, headquartered in Boca Raton, Florida, specializes in equipment rental and leasing services. The company operates under the industrial classification of Services-Equipment Rental & Leasing, NEC, and is incorporated in Delaware.
It is worth noting that the shares acquired by Dvorkin are held of record by PITA Holdings, LLC. While PITA is managed by Beta Investment Group, Inc., of which Dvorkin is the President, he disclaims beneficial ownership of the securities held by PITA, except to the extent of his pecuniary interest. Additionally, the reported amount excludes 1,190,000 shares of FlexShopper's common stock issuable upon the exercise of warrants held by PITA.
The recent purchases by Dvorkin may be seen by investors as a positive sign, reflecting a director's confidence in the future prospects of the company. As of now, the total shares owned following the latest transactions stand at 4,423,611, excluding the shares issuable upon warrant exercise.
FlexShopper has been previously known as Anchor Funding Services, Inc. before changing its name, and continues to provide consumers with flexible lease-to-own options for various consumer goods.
Investors and market watchers often pay close attention to the buying and selling activities of company insiders, as these can provide insights into the company's performance and insider perspectives on its valuation.
In other recent news, FlexShopper demonstrated robust growth in the fourth quarter of 2023, with a 7% increase in total fundings and a 42% rise in net lease and loan revenues. Gross profit also soared by over 300%, and operating income reached $5.6 million, indicating a significant turnaround from the previous year's loss. FlexShopper is also evolving its business model, transitioning its website into a comprehensive retail platform while broadening payment options and merchandise selection.
Following the company's strong fourth-quarter performance, H.C. Wainwright maintained a Buy rating and increased the price target for FlexShopper to $2.50. The firm revised its 2024 financial estimates, projecting FlexShopper's 2024 revenue to reach $155.0 million and adjusted EBITDA to be $28.0 million.
These recent developments are based on FlexShopper's better-than-anticipated operating results and the favorable outlook presented by the management. H.C. Wainwright also anticipates that FlexShopper will generate revenue of $173.0 million and an adjusted EBITDA of $33.0 million in 2025. The expected revenue growth is driven by new product sales through FlexShopper's online platform and the potential success from the company's recent new store openings.
InvestingPro Insights
As FlexShopper, Inc. (NASDAQ:FPAY) sees increased insider investment from director Howard Dvorkin, it's crucial to consider the broader financial landscape of the company. Recent data from InvestingPro provides a snapshot of FlexShopper's performance and market position.
InvestingPro Data reveals a market capitalization of $26.12 million, which, while modest, reflects the potential room for growth in the equipment rental and leasing sector. Despite the company's P/E Ratio sitting at -3.16, indicating that it is currently unprofitable, the stock has seen a significant return over the last week with an 8.62% price total return and an even stronger performance over the last month, at 13.51%. This could suggest a growing investor confidence, potentially in response to insider buying activities like those of Mr. Dvorkin.
One of the InvestingPro Tips points out that FlexShopper's stock generally trades with high price volatility. This characteristic could attract certain investors looking for short-term gains, but it also implies a higher risk profile. Additionally, while the company is not expected to be profitable this year, its liquid assets do exceed short-term obligations, which may provide some financial stability and flexibility.
For those interested in a deeper dive into FlexShopper's financials and potential investment strategies, there are additional InvestingPro Tips available. These tips could offer valuable insights, especially considering the company's current dynamics and insider trading activities. For access to all the tips, including an analysis of FlexShopper's valuation and profitability, visit https://www.investing.com/pro/FPAY. And for a limited time, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors may find these insights particularly useful in light of the recent insider purchases, as they provide a broader context for evaluating the potential impact of such transactions on the company's stock performance.
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