Remitly Global (NASDAQ:RELY) Stock Falls 6.7% – Here’s Why

Shares of Remitly Global, Inc. (NASDAQ:RELY) traded down 6.7% during mid-day trading on Wednesday. The stock traded as low as $20.36 and last traded at $19.8530. 291,664 shares were traded during trading, a decline of 93% from the average daily volume of 3,970,476 shares. The stock had previously closed at $21.28.

Analyst Ratings Changes

RELY has been the topic of a number of research analyst reports. Monness Crespi & Hardt restated a “buy” rating on shares of Remitly Global in a report on Thursday, August 6th. KeyCorp increased their target price on Remitly Global from $28.00 to $33.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Citigroup reissued an “outperform” rating on shares of Remitly Global in a research note on Thursday, August 6th. Cantor Fitzgerald boosted their price target on Remitly Global from $28.00 to $30.00 and gave the company an “overweight” rating in a report on Monday, August 10th. Finally, Zacks Research raised Remitly Global from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 14th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Buy” and an average price target of $27.78.

Remitly Global Stock Up 4.8%

The stock’s fifty day moving average price is $24.13 and its 200-day moving average price is $21.45. The company has a market capitalization of $4.48 billion, a price-to-earnings ratio of 15.22 and a beta of 0.36.

Remitly Global (NASDAQ:RELY) last announced its earnings results on Wednesday, August 5th. The financial services provider reported $0.93 EPS for the quarter, topping the consensus estimate of $0.12 by $0.81. Remitly Global had a net margin of 16.85% and a return on equity of 33.33%. The business had revenue of $495.16 million during the quarter, compared to analysts’ expectations of $486.25 million. During the same quarter in the prior year, the company posted $0.03 earnings per share. The firm’s revenue was up 20.2% on a year-over-year basis. Analysts anticipate that Remitly Global, Inc. will post 0.85 EPS for the current year.

Insider Buying and Selling

In related news, CFO Vikas D. Mehta sold 25,000 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $26.15, for a total transaction of $653,750.00. Following the sale, the chief financial officer owned 943,735 shares in the company, valued at approximately $24,678,670.25. This represents a 2.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Pankaj Sharma sold 21,000 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $26.39, for a total value of $554,190.00. Following the transaction, the insider directly owned 716,022 shares of the company’s stock, valued at $18,895,820.58. This trade represents a 2.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 490,038 shares of company stock worth $12,132,406 over the last three months. Company insiders own 6.53% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RELY. IFP Advisors Inc boosted its holdings in shares of Remitly Global by 59.1% in the 2nd quarter. IFP Advisors Inc now owns 1,419 shares of the financial services provider’s stock valued at $32,000 after buying an additional 527 shares during the last quarter. Summit Securities Group LLC bought a new stake in Remitly Global during the first quarter worth $26,000. Nykredit A S bought a new stake in Remitly Global during the second quarter worth $40,000. GAMMA Investing LLC lifted its stake in Remitly Global by 45.4% in the second quarter. GAMMA Investing LLC now owns 2,167 shares of the financial services provider’s stock valued at $49,000 after acquiring an additional 677 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Remitly Global by 140.8% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,642 shares of the financial services provider’s stock valued at $36,000 after acquiring an additional 1,545 shares during the last quarter. Institutional investors and hedge funds own 74.25% of the company’s stock.

Remitly Global Company Profile

Remitly Global, Inc is a digital financial services company that provides international money transfer services. Through its mobile application and website, customers can send funds to family and friends in other countries using bank deposits, mobile wallets, cash pickup, and other local delivery options, depending on the destination.

The company focuses on serving immigrants and other customers who regularly send money across borders. Remitly emphasizes a digital-first experience with features such as transfer tracking, multiple delivery methods, localized payment options, and customer support.