Insider Decision: Chris Sugden Offloads $2.16M Worth Of MoneyLion Stock

Chris Sugden, Board Member at MoneyLion ML, executed a substantial insider sell on December 10, according to an SEC filing.

What Happened: After conducting a thorough analysis, Sugden sold 25,000 shares of MoneyLion. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $2,155,380.

The latest market snapshot at Wednesday morning reveals MoneyLion shares up by 0.23%, trading at $88.22.

About MoneyLion

MoneyLion Inc is a mobile banking and financial membership platform that empowers people to take control of their finances. It is a full-service digital platform to deliver mobile banking, lending, and investment solutions. The company offers a personalized, all-in-one, digital financial platform that provides convenient, low-cost access to banking, borrowing, and investing solutions tailored for its customers, rooted in data, and delivered through its proprietary technology platform.

MoneyLion: A Financial Overview

Revenue Growth: MoneyLion's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 22.86%. 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.

Holistic Profitability Examination:

• Gross Margin: With a high gross margin of 71.69%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): MoneyLion's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.25.

Debt Management: MoneyLion's debt-to-equity ratio is below the industry average. With a ratio of 0.61, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: MoneyLion's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 303.52.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.03 is lower than the industry average, implying a discounted valuation for MoneyLion's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 18.71, MoneyLion presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

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

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