LSAK

Lesaka Technologies ($LSAK) Executive Snaps Up 64,000 Shares Near Price Lows - Bullish Signal for South African Fintech's Growth?

03/27/2025 20:10

A senior executive at South African-based fintech company Lesaka Technologies ($LSAK) has recently acquired over 64,000 shares within a span of about four weeks. This significant insider buying contrasts with last year's substantial selling by a director, potentially signaling internal confidence in the company's future growth trajectory. Ali Mazanderani, an officer at Lesaka, purchased a total of 64,002 shares worth approximately $310,000 between March 21 and March 26, 2025. Notably, on March 26 alone, he acquired 33,296 shares (valued at about $164,000) at an average price of $4.94. According to SEC filings, these transactions occurred at prices ranging from $4.68 to $5.00. The timing of these purchases is particularly noteworthy as they occurred when Lesaka's stock was trading at relatively low levels after falling from its November 2024 peak of $5.55. The share price, which had declined to as low as $4.44 on March 14, 2025, has since recovered to $5.01 (as of March 26, 2025) following Mazanderani's buying activity. This insider buying stands in stark contrast to the significant selling by Director Christopher GB Meyer last year. Between June 21 and June 28, 2024, Meyer sold a total of 106,217 shares worth approximately $496,000. Those sales were partially related to the forfeiture of restricted stock granted in July 2021 that failed to meet stock price target vesting conditions. Lesaka Technologies provides financial services and software to underserved consumers and merchants in Southern Africa, with primary listing on NASDAQ (LSAK) and secondary listing on the Johannesburg Stock Exchange (LSK). The company announced in November 2024 the acquisition of Recharger, a prepaid electricity submetering and payments business, in a deal valued at approximately $28 million (507 million ZAR), paid through a combination of cash (332 million ZAR) and stock (175 million ZAR). Despite revenue growth, the company continues to face profitability challenges. With a market capitalization of approximately $377 million, Lesaka reported TTM revenue of $576.6 million but a net loss of $44.12 million (EPS of -$0.67). The most recent quarter showed revenue of $222.6 million and gross profit of $54.29 million. Significantly, on February 6, 2025, the company reaffirmed its FY2025 guidance and provided new profitability guidance for FY2026. Revenue for FY2025 is projected between 10.0 billion and 11.0 billion ZAR, while adjusted EBITDA for FY2026 is expected to range between 1.25 billion and 1.45 billion ZAR, suggesting a focus on long-term profitability improvement. The recent insider buying comes at a time when Lesaka's stock trades at a forward P/E of 97.10, indicating that the market is placing a substantial premium on the company's future growth. Ali Mazanderani's significant share purchases could be interpreted as a signal of internal confidence in this growth outlook. Digital payments and financial services in emerging markets like South Africa are considered high-growth potential areas, and Lesaka appears to be strengthening its position in this market through strategic expansions such as the Recharger acquisition. The insider share purchases likely reflect confidence in this strategic direction. However, investors should approach with caution, considering the company's ongoing net losses and high forward P/E ratio. Whether Lesaka's growth strategy will translate into improved profitability, and whether the timing will meet market expectations, remain key variables that will influence the stock's future direction.

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