Remitly Global (NASDAQ:RELY) Shares Gap Down – Here’s What Happened

Remitly Global, Inc. (NASDAQ:RELY) gapped down prior to trading on Thursday. The stock had previously closed at $27.08, but opened at $22.62. Remitly Global shares last traded at $21.79, with a volume of 1,852,943 shares traded.

Remitly Global News Summary

Here are the key news stories impacting Remitly Global this week:

• Positive Sentiment: Q3 revenue reached a record $509.8 million, up about 22% year over year and slightly above analyst expectations. Send volume grew 25%; net income rose to $67.6 million, while adjusted EBITDA increased 97% to $120.8 million. Remitly Q3 results and outlook
• Positive Sentiment: Management raised its full-year 2026 outlook. The company also forecast Q4 revenue of $531 million to $533 million and described expectations for high-teens growth in 2027, supporting a positive growth outlook. Q4 guidance and 2027 growth outlook
• Positive Sentiment: The board expanded the share repurchase authorization from $200 million to $500 million, signaling added capacity to return capital to shareholders. The earnings-call coverage also cited AI-related efficiencies and expansion of payment services as growth drivers. Q3 earnings-call highlights
• Positive Sentiment: Remitly expanded its card nationwide and added the ability to send and request money across the U.S., broadening the product’s potential use. Remitly card expansion
• Neutral Sentiment: Despite the upbeat results and outlook, RELY traded lower. The provided reports offer no clear explanation for the market reaction, so the decline may reflect factors beyond the earnings headlines.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on RELY. Monness Crespi & Hardt reissued a “buy” rating on shares of Remitly Global in a research note on Thursday, August 6th. Citigroup reaffirmed an “outperform” rating on shares of Remitly Global in a report on Thursday, August 6th. Weiss Ratings cut shares of Remitly Global from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 30th. Zacks Research downgraded shares of Remitly Global from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Finally, Wolfe Research increased their price objective on shares of Remitly Global from $31.00 to $32.00 and gave the company an “outperform” rating in a report on Tuesday, August 25th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $27.78.

Remitly Global Price Performance

The stock has a market capitalization of $4.49 billion, a P/E ratio of 15.30 and a beta of 0.46. The stock’s fifty day moving average price is $23.74 and its 200 day moving average price is $20.62.

Remitly Global (NASDAQ:RELY) last announced its quarterly earnings data on Wednesday, November 4th. The financial services provider reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.15 by $0.15. The company had revenue of $509.84 million during the quarter, compared to analyst estimates of $507.31 million. Remitly Global had a net margin of 16.85% and a return on equity of 33.33%. The firm’s revenue for the quarter was up 21.5% on a year-over-year basis. During the same quarter last year, the business posted $0.04 EPS. On average, sell-side analysts expect that Remitly Global, Inc. will post 0.85 earnings per share for the current year.

Insider Transactions at Remitly Global

In other Remitly Global news, Director Phillip Riese sold 160,182 shares of the firm’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $24.94, for a total transaction of $3,994,939.08. Following the transaction, the director directly owned 361,094 shares in the company, valued at $9,005,684.36. This trade represents a 30.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Nigel Morris sold 20,000 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $26.26, for a total value of $525,200.00. Following the completion of the sale, the director owned 1,831,056 shares of the company’s stock, valued at $48,083,530.56. This represents a 1.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 478,738 shares of company stock worth $11,874,000 in the last ninety days. 6.53% of the stock is owned by company insiders.

Institutional Trading of Remitly Global

A number of hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in Remitly Global during the 2nd quarter valued at about $410,752,000. Generation Investment Management LLP purchased a new stake in shares of Remitly Global in the 2nd quarter worth approximately $109,637,000. Bank of America Corp DE boosted its stake in shares of Remitly Global by 471.7% during the first quarter. Bank of America Corp DE now owns 5,153,726 shares of the financial services provider’s stock valued at $80,759,000 after purchasing an additional 4,252,294 shares in the last quarter. Lead Edge Capital Management LLC bought a new position in shares of Remitly Global during the second quarter valued at approximately $60,232,971. Finally, Assenagon Asset Management S.A. bought a new position in shares of Remitly Global during the third quarter valued at approximately $31,985,000. 74.25% of the stock is owned by hedge funds and other institutional investors.

Remitly Global Company Profile

Remitly Global, Inc is a digital financial services company that enables consumers to send money internationally. Its platform is designed primarily for immigrants and other customers who regularly transfer funds to family and friends in their countries of origin.

Through its mobile application and website, Remitly allows users to initiate cross-border remittances and select delivery options such as bank deposits, mobile-wallet transfers, cash pickup and, in some markets, home delivery.