FPAY

FlexShopper($FPAY) Director Signals Confidence With 128K Share Purchase During Price Dip - Analysts See 196% Upside

05/06/2025 00:15

Shares of $FPAY (FlexShopper Inc), a micro-loan and lease-to-own service provider, have shown significant volatility in recent months, while board members and the CEO continue to purchase shares, drawing investor attention. $FPAY is a fintech company offering micro-loans and lease-to-own services to consumers who have difficulty accessing traditional financial services. With a market capitalization of approximately $25 million, this small-cap stock focuses on providing alternative financial solutions for purchasing appliances, furniture, and electronics to consumers with lower credit scores. Notably, Howard Dvorkin, a director at $FPAY, has consistently purchased shares over the past 12 months. According to SEC Form 4 filings, Dvorkin has made over 25 purchases from June 2024 to May 2025, acquiring approximately $450,000 worth of stock. Particularly significant is his most recent large transaction on May 1, 2025, when he purchased 128,668 shares (approximately $168,555). Dvorkin's shares are indirectly held through PITA Holdings, LLC and NRNS Capital Holdings, LLC. As the manager of these entities, he disclaims beneficial ownership of the securities except for his pecuniary interest. Additionally, a substantial number of warrants held by these entities (1,190,000 shares for PITA and 753,697 shares for NRNS) were excluded from these transactions. Furthermore, CEO Harold Russell Heiser Jr. purchased 30,000 shares (approximately $43,500) on December 23, 2024, under a Rule 10b5-1 trading plan. This represents another signal of management's confidence in the company's growth potential. These insider buying patterns show an interesting correlation with $FPAY's stock price movements. The stock price started at around $1.10 in June 2024, rose to approximately $2.00 by late November 2024, then underwent a correction in early 2025, and is currently trading at around $1.35. Notably, insider purchases tend to concentrate during periods when the stock price is declining. Looking at $FPAY's performance, their Q3 results announced in November 2024 reported earnings of 5 cents per share, significantly outperforming analyst expectations of a 15-cent loss. Revenue increased by 22.9% year-over-year to $38.59 million. However, Q4 results announced in April 2025 showed a loss of 9 cents per share, with revenue of $35.51 million falling short of the expected $39.95 million. Despite this volatility, analysts maintain a 'buy' rating on $FPAY, with a median price target of $4.00, approximately 196% higher than the current stock price. This reflects the market's long-term confidence in the company's business model and growth potential. Dvorkin's large purchase (128,668 shares) in early May 2025 sends a strong message to the market. This purchase came shortly after the stock temporarily declined following the Q4 earnings announcement, suggesting that insiders view the current price as an attractive buying opportunity. Additionally, the purchase was made ahead of the Q1 2025 earnings announcement scheduled for May 12, potentially indicating management's positive outlook on upcoming results. In the short term, the Q1 earnings announcement is expected to be a key momentum driver. Analysts anticipate a loss of 14 cents per share and revenue of $32.197 million for Q1. If results exceed these expectations, the stock could see a significant rebound. From a long-term perspective, $FPAY has a unique business model targeting a niche market in consumer finance. In the current environment of recession concerns and potential interest rate cuts, the need for alternative financial solutions for consumers who struggle to access traditional financial services may grow. In conclusion, $FPAY's insider trading patterns suggest that management has strong confidence in the company's fundamental value and growth potential. The recent large purchase, in particular, may reflect insiders' view that the current stock price is undervalued relative to its actual worth. However, investors should also consider the typical volatility of small-cap stocks, regulatory risks in the consumer finance sector, and the potential for increased credit risk during economic downturns.

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