Insider Transaction: Mark Newcomer Sells $321K Worth Of PaySign Shares

A substantial insider sell was reported on June 10, by Mark Newcomer, CEO at PaySign PAYS, based on the recent SEC filing.

What Happened: Newcomer's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 66,193 shares of PaySign. The total transaction value is $321,549.

PaySign's shares are actively trading at $4.92, experiencing a down of 0.71% during Tuesday's morning session.

All You Need to Know About PaySign

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.

Breaking Down PaySign's Financial Performance

Positive Revenue Trend: Examining PaySign's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 41.0% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Insights into Profitability:

• Gross Margin: Achieving a high gross margin of 62.86%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, PaySign exhibits below-average bottom-line performance with a current EPS of 0.05.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.07.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 45.05 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 4.33 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 25.75 reflects market recognition of PaySign's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Illuminating the Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

The Insider's Guide to Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

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

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