Insider Unloading: Jeffery B. Baker Sells $79K Worth Of PaySign Shares

Jeffery B. Baker, Chief Financial Officer at PaySign PAYS, executed a substantial insider sell on March 5, according to an SEC filing.

What Happened: Baker opted to sell 27,691 shares of PaySign, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $79,428.

In the Tuesday's morning session, PaySign's shares are currently trading at $2.78, experiencing a down of 0.0%.

Get to Know PaySign Better

PaySign Inc is a provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing designed for businesses, consumers and government institutions. The Company creates customized, payment solutions for clients across industries, including pharmaceutical, healthcare, hospitality and retail. The company's revenues include fees generated from cardholder fees, interchange, card program management fees, transaction claims processing fees, and settlement income.

PaySign: Financial Performance Dissected

Revenue Growth: PaySign's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 17.02%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 51.06%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): PaySign's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.02.

Debt Management: PaySign's debt-to-equity ratio is below the industry average. With a ratio of 0.19, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: PaySign's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 93.67.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.44 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): PaySign's EV/EBITDA ratio of 45.1 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of PaySign's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.