Repay Holdings Corp (NASDAQ:RPAY) disclosed in a recent filing that Executive Vice President Jacob Hamilton Moore has sold a significant amount of company stock. Over the course of two days, Moore sold a total of 310,632 shares of Class A Common Stock, obtaining an aggregate of over $2.5 million.
The transactions, which took place on September 4 and September 5, 2024, saw the Executive Vice President dispose of shares at prices ranging from $8.10 to $8.44. Specifically, on the first day, Moore sold 210,632 shares at a weighted average price of $8.31. The following day, an additional 100,000 shares were sold at a weighted average price of $8.22.
Following these sales, Moore's direct ownership in Repay Holdings Corp has decreased to 140,130 shares of Class A Common Stock. This series of transactions comes after an exchange of Post-Merger Repay Units for an equivalent number of Class A common stock shares, which did not involve any monetary transaction, as per the footnotes in the SEC filing.
Investors and market watchers often scrutinize insider sales for signals about an executive's confidence in the company's prospects, though such transactions can be motivated by a variety of personal financial considerations.
Repay Holdings Corp, with its business address in Atlanta, Georgia, operates in the business services sector, providing payment processing solutions. The company was formerly known as Thunder Bridge Acquisition Ltd before changing its name.
The sales were conducted in a manner compliant with SEC regulations, as detailed by the footnotes in the filing, which also state Moore's commitment to provide full information regarding the number of shares sold at each price upon request.
In other recent news, Repay Holdings Corporation reported a successful second quarter in 2024, marking a 7% growth in gross profit and a 10% increase in adjusted EBITDA. This growth has been attributed to strategic initiatives such as increased go-to-market efficiency, client implementations, and product development. The company also expanded its customer base, particularly in the Consumer Payments segment and bolstered its financial position via a convertible notes offering and an expanded credit facility.
The company's free cash flow conversion touched 57%, with expectations to exceed the 60% full-year target in the third quarter. Revenue projections for the year sit between $214 million and $220 million, and adjusted EBITDA is expected to range from $139 million to $142 million. The company anticipates a 20% growth impact from the 2024 presidential election cycle, with the majority of this impact expected in the latter half of the year.
Repay is also investing in innovation, automation, and M&A opportunities while focusing on profitable growth and efficiency. The company expects sustained mid to high-teens growth in free cash flow beyond 2024. However, growth in Instant Funding has decelerated due to lapping a large client from the previous year. Despite this, the company remains positive about future prospects, citing a healthy M&A pipeline and positive sales pipeline development from software integrations and partnerships.
InvestingPro Insights
As Repay Holdings Corp (NASDAQ:RPAY) navigates the financial landscape, recent transactions by an executive have drawn attention. Amid this activity, InvestingPro data and tips provide a broader context for evaluating the company's current status and future outlook.
InvestingPro data indicates that Repay Holdings Corp's market capitalization stands at $707.56 million, with a negative Price to Earnings (P/E) ratio of -8.43, reflecting investor concerns about profitability. Despite these challenges, the company has maintained a Gross Profit Margin of 76.99% over the last twelve months as of Q2 2024, showcasing its ability to retain a significant portion of revenue after accounting for the cost of goods sold.
InvestingPro Tips suggest that while Repay Holdings Corp has not been profitable over the last twelve months, analysts predict the company will become profitable this year. This is a key factor for investors considering the future potential of the company. Moreover, the company's liquid assets exceed its short-term obligations, indicating a strong short-term financial position. It's worth noting that 8 analysts have recently revised their earnings estimates downwards for the upcoming period, which could signal potential headwinds or a conservative outlook.
For those interested in further analysis, there are additional InvestingPro Tips available for Repay Holdings Corp at https://www.investing.com/pro/RPAY, providing deeper insights into the company's financial health and stock performance.
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