Mark Newcomer, CEO of Paysign, Inc. (NASDAQ:PAYS), recently sold a significant portion of his shares in the company, according to a filing with the Securities and Exchange Commission. Over three consecutive days, Newcomer sold a total of 100,000 shares, resulting in proceeds of approximately $371,108. The sales were executed under a pre-arranged trading plan, with prices ranging from $3.6601 to $3.7519 per share.
These transactions, conducted on October 21, 22, and 23, leave Newcomer with 9,336,886 shares of Paysign's common stock. The sales were part of a Rule 10b5-1 trading plan, which allows company insiders to sell a predetermined number of shares at set times to avoid potential conflicts of interest.
Paysign, headquartered in Henderson, Nevada, provides prepaid card programs and processing services for corporate, consumer, and government applications. The company was formerly known as 3PEA International, Inc. before changing its name in 2010.
In other recent news, Paysign Inc. reported a strong Q2 2024 performance, with revenues reaching $14.3 million, a 30% increase from the previous year. The company's adjusted EBITDA also saw a significant 96% rise, hitting $2.24 million. This growth was primarily driven by the patient affordability business, which saw a 267% increase in revenue. The company also plans to expand its plasma donor compensation business by adding 5 to 10 new plasma centers by the end of the year.
Paysign Inc. has revised its 2024 revenue estimates upwards, now expecting total revenues to be between $56.5 million and $58.5 million. The company is also anticipating gross profit margins to be between 54% and 55%, with operating expenses forecasted to lie between $30 million and $32 million. The company is preparing to generate interest income ranging from $3 million to $3.2 million and is estimating a net income between $2 million and $3 million.
These are recent developments and the company remains positive about ongoing growth, with a confident outlook on their operational cash flow to support future ambitions. Despite the need for additional personnel to support growth, Paysign Inc. is experiencing operating leverage with improved adjusted EBITDA margins and is working with over 40 pharmaceutical companies, ensuring stability to the company's revenue streams.
InvestingPro Insights
In light of CEO Mark Newcomer's recent share sales, it's worth examining Paysign's current financial position and market performance. According to InvestingPro data, Paysign (NASDAQ:PAYS) has a market capitalization of $200.86 million, with a price-to-earnings ratio of 25.82. This valuation metric suggests that investors are willing to pay a premium for the company's earnings, which may reflect expectations of future growth.
Indeed, Paysign has demonstrated strong revenue growth, with a 26.45% increase over the last twelve months as of Q2 2024, reaching $53.61 million. This growth trajectory is further emphasized by the company's quarterly revenue growth of 29.8% in Q2 2024. Such robust top-line expansion could be a factor in the stock's impressive performance, with a one-year price total return of 121.64% as of the latest data.
However, investors should note that despite the strong revenue growth, an InvestingPro Tip indicates that net income is expected to drop this year. This projection, along with the fact that the stock price has fallen significantly over the last three months (-26.26%), may provide context for the CEO's decision to sell shares under his pre-arranged trading plan.
Another InvestingPro Tip highlights that Paysign is trading at a high Price / Book multiple, which is corroborated by the data showing a Price / Book ratio of 7.5 for the last twelve months as of Q2 2024. This elevated multiple suggests that the market has high expectations for the company's future performance, despite the recent share price decline.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for Paysign, which could provide valuable context for understanding the company's financial health and market position.
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