NEW YORK—Richard Correia, the President, Chief Financial Officer, and Treasurer of MoneyLion Inc. (NYSE:ML), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Correia sold shares of the company's Class A common stock over two days, with the transactions totaling $641,440.
On November 7, Correia sold 5,296 shares at a price of $60.00 per share. The following day, he sold an additional 4,046 shares at $80.00 per share. These sales were conducted under a pre-arranged trading plan adopted on March 13, 2024, in compliance with Rule 10b5-1(c) under the Securities Exchange Act of 1934.
Following these transactions, Correia retains ownership of 209,845 shares, which include restricted stock units and performance share units. These units represent a contingent right to receive shares of Class A common stock of MoneyLion Inc., as previously reported in Correia's prior filings.
MoneyLion Inc., a financial services company, continues to be a significant player in the finance sector, with its stock being actively traded on the New York Stock Exchange under the ticker symbol ML.
In other recent news, financial technology company MoneyLion reported a record Q3 revenue of $135 million, marking a 23% increase from the previous year. This robust financial performance led to an upward revision of its full-year revenue guidance to a range of $536 million to $541 million. The company also reported a record adjusted EBITDA of $24 million, reflecting an 18% margin. These strong results were attributed to significant customer growth, with the total reaching 18.7 million, and the expansion of its enterprise segment.
On the heels of these results, Needham maintained a Buy rating on MoneyLion shares and increased the price target to $100 from $70. The company's Q4 guidance, which surpassed expectations, was noted as a contributing factor to this decision. Needham's positive outlook for MoneyLion is also reflected in the firm's decision to keep the company on its Conviction List.
In addition to these financial highlights, MoneyLion launched MoneyLion Checkout to enhance conversion rates for enterprise partners, showing positive early indicators, including a 25% improvement in click-through rates. These recent developments highlight the company's strategic initiatives, including the expansion into new financial verticals such as auto loans and insurance. However, it should be noted that the company reported one-time legal expenses totaling $8 million, which affected EBITDA adjustments.
InvestingPro Insights
MoneyLion Inc. (NYSE:ML) has been experiencing significant market momentum, as evidenced by recent InvestingPro data. The company's stock has shown remarkable performance, with a 208.97% price total return over the past year and an impressive 89.42% return in just the last week. This aligns with the recent insider selling activity by CFO Richard Correia, who may be capitalizing on the stock's strong performance.
Despite the positive price action, investors should note that MoneyLion is trading at a high earnings multiple, with a P/E ratio of 201.51. This valuation metric suggests that the stock may be priced at a premium relative to its earnings. An InvestingPro Tip indicates that the stock is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 3.17 for the last twelve months as of Q3 2024.
On the financial front, MoneyLion has shown solid revenue growth of 23.4% in the last twelve months, with total revenue reaching $500.28 million. The company's gross profit margin stands at a healthy 53.11%, indicating efficient cost management. An InvestingPro Tip highlights that net income is expected to grow this year, which could potentially support the current valuation levels.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for MoneyLion, providing a deeper understanding of the company's financial health and market position.
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