Paysign CEO sells $6,750 worth of stock via Investing.com

Mark Newcomer, CEO of Paysign, Inc. (NASDAQ:PAYS), recently sold some of its company stock, according to the latest filings. The transaction, which took place on September 13, 2024, involved the sale of 1,500 shares at a price of $4.50 each, for a total value of $6,750.

The sale was made pursuant to a Rule 10b5-1 trading plan, which Newcomer had adopted on June 12, 2024. Such plans allow company insiders to set a predetermined schedule for buying or selling stock in a at which time they do not possess material materials. non-public information, providing an affirmative defense to allegations of insider trading. The plan will remain in effect until June 11, 2025 and allows for transactions involving up to 1.2 million shares of common stock.

Following the sale, the CEO still retains a significant stake in the company, with 9,547,386 shares of Paysign common stock remaining in his possession. Investors often watch insider trading closely because it can provide insight into executives’ perspectives on their company’s future prospects.

Paysign, based in Henderson, Nevada, operates in the business services sector, offering various payment solutions and services. The company, formerly known as 3PEA International, Inc., continues to evolve and expand its financial technology offerings.

In other recent news, Pasign Inc. showed robust growth in its Q2 2024 earnings report. The company’s revenue grew 30% year-over-year to $14.3 million. This growth was primarily driven by the patient accessibility business, which saw an impressive 267% increase in revenue, contributing 59% to total revenue growth. Adjusted EBITDA also increased, showing a 96% increase to $2.24 million.

Pasign Inc. revised upward its full-year 2024 revenue guidance, now expecting total revenue to be between $56.5 million and $58.5 million. As part of its growth strategy, the company plans to expand its plasma donor compensation business by adding 5 to 10 new plasma centers by the end of the year. Gross profit margins are expected to be between 54% and 55%, with operating expenses forecast between $30 million and $32 million.

Despite the need for additional staff to support growth, which may impact operating expenses, Paysign remains optimistic about its future. The company works with more than 40 pharmaceutical companies and has a majority of new clients in development. These recent developments underscore Paysign’s commitment to its mission to transform healthcare payments.

InvestingPro Insights

Amid recent insider trading at Paysign, Inc. (NASDAQ:PAYS), investors closely monitor the company’s financial metrics and market performance. In the trailing twelve months ended Q2 2024, Paysign’s market capitalization stands at a modest $239.12 million, reflecting its position in the business services sector. The company’s P/E ratio, a measure of the stock’s current price relative to its earnings per share, is 30.55, indicating that the stock trades at a high earnings multiple compared to industry peers. This is further underscored by an adjusted P/E ratio of 31.9, suggesting a premium valuation.

One of InvestingPro’s tips points out that despite Paysign’s high valuation, net income is expected to decline this year. This forecast could be a critical factor for investors to consider as they analyze the CEO’s recent share sale. On a more positive note, another InvestingPro tip points out that the company has performed strongly over the past year, with a one-year total price return of 124.0%. This impressive performance could be a sign of strong market confidence in Paysign’s growth trajectory.

Additionally, Pasign’s revenue growth has been robust, growing 26.45% over the trailing twelve months through Q2 2024. This growth is further underscored by quarterly revenue growth of 29.8% for Q2 2024. Margin The company’s gross profit margin is a healthy 52.22%, which indicates efficient management of its service costs relative to revenues.

For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available on InvestingPro that may provide more insight into the financial health and performance of Paysign’s stock. These tips, along with real-time data, can help investors make more informed decisions in the context of the CEO’s recent stock selloff and the company’s future prospects.

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