Kevin Scott Kirby (NYSE:KEX), Co-Founder and President of Abacus Life, Inc. (NASDAQ:ABL), has sold a significant portion of his common stock holdings, according to a recent SEC filing. On November 21, Kirby sold 156,250 shares at a price of $8 per share, totaling $1.25 million. Following this transaction, Kirby retains ownership of 12,437,000 shares in the company. Abacus Life, headquartered in Orlando, Florida, operates in the investment advice sector.
In other recent news, Abacus Life Inc. has been the subject of significant analyst attention. B.Riley maintained its Buy rating on the company and raised its price target to $17.00, following a recent $100 million common stock offering. The firm's analyst increased earnings per share (EPS) estimates for 2024 to 2026, highlighting the potential impact of declining short-term rates through 2025 on Abacus Life's market positioning.
Piper Sandler also raised its price target for Abacus Life from $12.00 to $13.00, maintaining an Overweight rating. This adjustment was made after the company's robust performance, with revenue and adjusted EBITDA surpassing initial guidance, and $93 million deployed during the quarter. The firm revised upward the adjusted EBITDA estimate for 2024 and core EPS estimates for 2024 to 2026.
Northland initiated coverage on Abacus Life shares with an Outperform rating and a price target of $13.50, indicating confidence in the company's future growth. In addition to these developments, Abacus Life reported strong financial results for the quarter ending June 30, 2024, with over $100 million in investments. The company also expanded its assets under management through the strategic acquisitions of FCF Advisors and Carlisle Management Company SCA. Lastly, Abacus Life appointed Elena Plesco as its new Chief Capital Officer, signaling a focus on capital management strategies and global expansion efforts. These are the recent developments for Abacus Life Inc.
InvestingPro Insights
The recent stock sale by Abacus Life's Co-Founder and President Kevin Scott Kirby comes at a time when the company's stock has faced significant headwinds. According to InvestingPro data, ABL's stock has taken a big hit over the last week, with a 1-week price total return of -9.02%. This short-term decline is part of a broader trend, as the stock has fallen by 25.53% over the past three months.
Despite these challenges, Abacus Life shows strong revenue growth, with a 77.68% increase in the last twelve months as of Q3 2023. The company's gross profit margin stands at an impressive 90.9%, indicating efficient cost management. However, an InvestingPro Tip notes that the company is quickly burning through cash, which could be a concern for investors given the recent stock performance.
On a positive note, another InvestingPro Tip suggests that net income is expected to grow this year, potentially signaling a turnaround in the company's financial performance. This aligns with analysts' predictions that the company will be profitable this year, despite not being profitable over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Abacus Life, providing deeper insights into the company's financial health and market position.
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