Pagaya Trades at 7.9x Forward Earnings with $32 Target After CEO Buys $250K
PRG•B. Riley reiterated a Buy rating on Pagaya with a $32 price target after CEO Gal Krubiner purchased $250,000 of shares, highlighting improving credit performance, an expanding network of lending partners and rising profitability. The stock trades at 7.9 times forward earnings versus an 18x peers’ average, implying a 93% upside.
1. B. Riley Reiterates Buy Rating
B. Riley affirmed a Buy rating on Pagaya Technologies, setting a $32 price target. The brokerage cited expectations of $2.10 in forward earnings per share and a significant valuation gap to peers as key drivers for potential stock appreciation.
2. Insider Buying Signals Confidence
CEO Gal Krubiner purchased approximately $250,000 of shares at $15.43 each in late June, marking continued insider accumulation following earlier purchases. This buying activity is viewed as a strong vote of confidence in the company’s credit strategies and long-term profitability.
3. Valuation Discount and Upside Potential
Pagaya’s forward P/E of 7.9x is well below the 18x average for comparable fintech firms, presenting a catch-up opportunity. With credit performance improving and a growing lending partner network, the brokerage sees a potential 93% upside from current levels as bearish pressure eases.
