Neil Williams, a director at Oportun Financial Corp (NASDAQ:OPRT), recently acquired 25,000 shares of the company's common stock. The shares were purchased at a weighted average price of $3.87, with the transaction value totaling $96,750. According to InvestingPro analysis, the stock appears undervalued at current levels, with analyst price targets ranging from $3.50 to $8.00. The purchase occurred on December 11, 2024, and reflects Williams' direct ownership of 140,338 shares following the transaction. The shares were bought in multiple transactions at prices ranging from $3.78 to $3.93 per share. The stock has shown strong momentum, with a nearly 30% gain over the past six months. InvestingPro subscribers can access detailed financial health metrics and 8 additional investment tips for OPRT, along with a comprehensive Pro Research Report available for this $140M market cap company.
In other recent news, Oportun Financial has reported several significant developments. The company has expanded its borrowing capacity to approximately $429.03 million, a move aimed at bolstering its financial position and supporting its operational and strategic initiatives. The adjustment of interest on borrowings to a rate of Term SOFR plus a weighted average spread of 3.35% is included in this new arrangement, referred to as the Master Amendment.
Oportun Financial also reported strong growth and cost efficiency in its Q3 earnings for 2024. The firm's adjusted EBITDA rose to $31 million, surpassing guidance by 21%, and its adjusted net income reached $0.9 million. Operating expenses were cut to $102 million, down 17% year-over-year.
Furthermore, Oportun Financial entered into a new credit agreement and issued warrants to affiliates of investment firms Castlelake L.P. and Neuberger Berman. The company also committed to a Registration Rights Agreement, obligating it to file a registration statement with the U.S. Securities and Exchange Commission for the shares underlying the warrants.
For the full year of 2024, total revenue is expected to be between $997 million and $1.001 billion, with adjusted EBITDA guidance set at $92 million to $94 million. The company has projected a strong close to 2024, with an optimistic outlook for 2025, forecasting a diluted EPS between $0.25 and $0.50 for 2025 and an annualized net charge-off rate between 11% and 12%. These recent developments underscore Oportun Financial's strategic focus on cost efficiency, credit quality, and strategic transactions.
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