Mark Newcomer, the CEO of Paysign, Inc. (NASDAQ:PAYS), recently sold 1,500 company shares on September 13, 2024, at a price of $4.50 per share, totaling $6,750, according to the latest filings.
The sale was executed under a Rule 10b5-1 trading plan that Newcomer adopted on June 12, 2024. These plans allow insiders to schedule share transactions without possessing material non-public information, providing protection against insider trading allegations. The plan will be active until June 11, 2025, permitting transactions involving up to 1.2 million shares of common stock.
Despite the sale, the CEO still holds a significant stake in the company, with 9,547,386 shares of Paysign common stock. Insider transactions are closely monitored by investors for insights into executives’ views on the company’s future.
Paysign, headquartered in Henderson, Nevada, operates in the business services sector, offering various payment solutions. The company, previously known as 3PEA International, Inc., continues to expand its services in the financial technology industry.
In recent news, Paysign Inc. reported strong growth in its Q2 2024 earnings. The company’s revenue increased by 30% year-over-year, reaching $14.3 million. The patient affordability business saw a remarkable 267% revenue growth, contributing significantly to the overall revenue increase. Adjusted EBITDA also surged by 96% to $2.24 million.
Paysign Inc. has raised its full-year 2024 revenue guidance, expecting total revenues to range between $56.5 million and $58.5 million. The company plans to expand its plasma donor compensation business by adding 5 to 10 new plasma centers by the end of the year as part of its growth strategy. Gross profit margins are projected to be between 54% and 55%, with operating expenses estimated between $30 million and $32 million.
Despite the need for additional personnel to support growth, which may impact operating expenses, Paysign remains positive about its future. The company is collaborating with over 40 pharmaceutical firms and has a significant number of new clients in the pipeline. These recent developments highlight Paysign’s dedication to revolutionizing healthcare payments.
InvestingPro Insights
With recent insider transactions at Paysign, Inc. (NASDAQ:PAYS), investors are closely monitoring the company’s financial metrics and market performance. In the past twelve months ending in Q2 2024, Paysign’s market capitalization stands at $239.12 million, reflecting its position in the business services sector. The company’s P/E ratio is 30.55, indicating that the stock is trading at a high earnings multiple compared to industry peers. The adjusted P/E ratio of 31.9 further suggests a premium valuation.
One InvestingPro Tip notes that although Paysign has a high valuation, the net income is expected to decline this year, a crucial factor for investors to consider in light of the CEO’s recent share sale. On a positive note, another InvestingPro Tip highlights the company’s impressive one-year price total return of 124.0%, indicating strong market confidence in Paysign’s growth trajectory.
Moreover, Paysign’s revenue growth has been robust, with a 26.45% increase over the last twelve months as of Q2 2024. Quarterly revenue growth in Q2 2024 was 29.8%. The company’s gross profit margin is a healthy 52.22%, demonstrating efficient management of service costs relative to revenue.
For investors seeking detailed analysis, additional InvestingPro Tips on InvestingPro can offer further insights into Paysign’s financial health and stock performance. These tips, combined with real-time data, can aid investors in making informed decisions regarding the CEO’s recent stock sale and the company’s future prospects.
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