Core Viewpoint - Pagaya Technologies (NASDAQ:PGY) is identified as one of the small-cap software infrastructure stocks with significant upside potential despite recent price target reductions by analysts [1]. Group 1: Analyst Insights - Benchmark analyst Mark Palmer reduced the price target for Pagaya Technologies from $48 to $33 while maintaining a Buy rating, indicating an upside potential of over 168% [1]. - Citizens JMP analyst David Scharf lowered his target price from $35 to $22 but kept an Outperform rating, suggesting an upside potential of nearly 79% from current levels [3]. - Both analysts noted that the recent selloff was disconnected from management's expectations, with no operational issues or credit stress reported by the company [2]. Group 2: Company Overview - Pagaya Technologies is a product-focused technology company that aims to reduce manual effort and enhance accuracy in business workflows through data science and proprietary AI-enabled technology [4]. - The company serves a variety of clients, including financial institutions, fintech companies, banks, and real estate service providers [4]. Group 3: Market Context - Management's guidance for 2026 reflects a cautious growth forecast amid credit tightening, but there are potential entry points due to near-term market fluctuations [3].

Core Insights - Pagaya Technologies (PGY) achieved GAAP profitability in 2025 after substantial losses in previous years, marking a significant turnaround with positive net income reported in all four quarters of the year [1][2]. Financial Performance - For the full year 2025, Pagaya reported a record net income of $81.4 million, a substantial recovery from a net loss of $401.4 million in 2024 [2][9]. - Total revenue and other income grew by 26.1% year over year, primarily driven by increased fee income from its lending network [2][9]. - Adjusted EBITDA surged by 76.3% year over year, indicating improved operational efficiency and cost management [3][9]. Operational Efficiency - The company benefited from operating leverage, where revenue growth outpaced expense growth, leading to improved margins and a quicker transition to profitability [3][4]. - Enhanced funding diversification and disciplined risk management practices supported the company's profitability, allowing it to maintain capital availability while focusing on profitable growth [4]. Market Reaction - Despite the strong performance in 2025, PGY's stock experienced a decline due to management's softer-than-expected guidance for early 2026, projecting network volume of $2.5-$2.7 billion and total revenues of $315-$335 million for Q1 2026 [5][9]. - The stock has lost 63.4% over the past six months, contrasting with a 25% decline in the industry [8][10]. Peer Comparison - In 2025, Upstart Holdings, Inc. reported a net income of $53.6 million, with total revenues increasing by 64% year over year to $1.04 billion [6]. - Upstart expects total revenues of $1.4 billion for 2026, indicating strong growth prospects in comparison to Pagaya's guidance [7].

Core Viewpoint - Canaccord and Keefe Bruyette have both lowered their price targets for Pagaya Technologies Ltd. while maintaining positive ratings, indicating a cautious but optimistic outlook on the company's future growth potential [1][2]. Group 1: Price Target Adjustments - Canaccord reduced its price target on Pagaya Technologies Ltd. to $32 from $39 while maintaining a Buy rating [1] - Keefe Bruyette lowered its price target to $30 from $35 while keeping an Outperform rating [2] Group 2: Financial Performance - Pagaya reported fourth-quarter revenue of $321.036 million, which was below the consensus estimate of $349.51 million [2] - For fiscal 2026, Pagaya guided revenue expectations between $1.4 billion and $1.575 billion, compared to consensus estimates of $1.52 billion [2] Group 3: Company Strategy and Market Position - CEO Gal Krubiner emphasized the company's focus on long-term growth and profitability, supported by previous investments [2] - Pagaya utilizes data science and proprietary AI technology to serve financial services providers and asset investors across various markets [3]

Key Takeaways PGY stock plunged 47.7% in a month after it provided a soft early 2026 guidance.Pagaya projects 1Q26 network volume of $2.5-$2.7B and revenues of $315-$335M.PGY's tighter underwriting may boost credit quality but could curb near-term loan growth.After an impressive price performance in most of 2025, shares of Pagaya Technologies Ltd. (PGY) have plunged 47.7% in the past month, underperforming the S&P 500 Index and the industry to which it belongs.If we compare the company’s price performance t ...

Core Insights - Pagaya Technologies Ltd. (NASDAQ:PGY) is identified as one of the 14 oversold value stocks to invest in currently [1] Group 1: Financial Transactions - On February 4, 2026, Pagaya closed a $800 million AAA-rated personal loan ABS transaction, exceeding the initial $600 million target by 33% due to strong institutional demand [2] - The transaction involved 32 investors, most of whom returned from prior deals, indicating confidence in Pagaya's AI-driven consumer credit platform [2] - Since 2018, Pagaya has issued over $34.5 billion across 85 ABS deals, showcasing its significant market presence [2] Group 2: Strategic Agreements - On January 26, 2026, Pagaya finalized a forward flow agreement with Sound Point Capital Management to acquire up to $720 million in point-of-sale loans [3] - This agreement allows Pagaya to employ scalable, repeatable capital solutions across its growing product portfolio, enhancing its operational capabilities [3] - The company aims to build a multi-channel funding platform by combining public ABS programs with private capital partnerships to drive growth and resilience in 2026 [3] Group 3: Company Overview - Pagaya Technologies Ltd. is a New York-based AI fintech company that develops data-driven solutions for consumer credit [4] - The company enables real-time evaluation across personal loans, auto, and point-of-sale products for institutional investors [4]

Core Insights - Pagaya Technologies reported quarterly earnings of 80 cents per share, exceeding the analyst consensus estimate of 69 cents per share [1] - The company reported quarterly sales of $321.036 million, which fell short of the analyst consensus estimate of $349.048 million [1] - For the first quarter, Pagaya expects sales between $315 million and $335 million, compared to market estimates of $346.734 million [1] Financial Performance - The fourth quarter and full-year results highlight the company's focus on long-term growth and profitability, benefiting from prior investments [2] - CEO Gal Krubiner emphasized the company's strategy to bridge the gap between Main Street and Wall Street [2] Stock Performance - Pagaya Technologies shares increased by 1% to $14.34 following the earnings announcement [3] - Analysts adjusted their price targets for Pagaya Technologies after the earnings report [3] Analyst Ratings - Canaccord Genuity analyst Joseph Vafi maintained a Buy rating on Pagaya Technologies but reduced the price target from $39 to $32 [4] - Benchmark analyst Mark Palmer also maintained a Buy rating while lowering the price target from $48 to $33 [4]

Core Viewpoint - Pagaya Technologies Ltd. (NASDAQ:PGY) has received an "Overweight" rating from Stephens, with a revised price target of $25, down from $33, despite a significant drop in stock price [1][6]. Financial Performance - Pagaya reported total revenue and other income of $335 million for the latest quarter, representing a 20% year-over-year increase, but this was below analysts' expectations of nearly $349 million [2]. - The company's non-GAAP net income surged nearly sixfold to approximately $78.8 million, or $0.80 per share, significantly exceeding the consensus estimate of $0.35 per share [4][6]. Stock Performance - The stock price of PGY is currently $14.19, reflecting a decrease of $4.45 or approximately 23.87% [5]. - During the trading day, PGY fluctuated between a low of $13.50 and a high of $15.29, with a market capitalization of approximately $1.14 billion and a trading volume of 23,772,868 shares on NASDAQ [5]. Network Volume - Pagaya's network volume saw a modest increase of 3%, reaching $2.7 billion, which, combined with the revenue shortfall, raised investor concerns [3].

Core Viewpoint - Pagaya Technologies Ltd. is a financial technology company utilizing artificial intelligence to enhance decision-making in the financial sector, with a price target of $33 set by Benchmark Co., indicating a potential increase of 132% from its current price of $14.19 [1][5] Financial Performance - The Q4 2025 earnings call revealed that despite the current stock price of $14.19, which is a decrease of 23.87% from previous levels, the company is committed to its long-term growth strategy [2][5] - The company's stock has shown significant volatility, with a 52-week high of $44.99 and a low of $8.50, which is crucial for investors to consider [3][5] Market Activity - Pagaya's market capitalization is approximately $1.14 billion, reflecting its size in the financial technology sector [3] - The trading volume for NASDAQ:PGY is 23,772,868 shares, indicating active investor interest that can influence stock price movements and liquidity [4]

Core Insights - Pagaya Technologies reported quarterly results that fell short of market expectations, resulting in a nearly 24% decline in share price [1] Financial Performance - The company generated $335 million in total revenue and other income for the fourth quarter, marking a 20% year-over-year increase [2] - Network volume increased by only 3% to $2.7 billion, which was below expectations [2] - Non-GAAP net income rose almost sixfold to nearly $78.8 million, or $0.80 per share, surpassing the consensus estimate of $0.35 per share [4] Strategic Changes - The slower growth in network volume and the disparity between revenue and net income growth rates were attributed to Pagaya's strategic exit from its single-family rental (SFR) operations [5] Future Guidance - For the first quarter, Pagaya anticipates network volume to be flat or slightly down, ranging from $2.5 billion to $2.7 billion, with revenue projected between $315 million and $335 million [7] - The company's guidance for the full year includes a network volume range of $11.25 billion to $13 billion and revenue expectations of $1.4 billion to nearly $1.58 billion [8]

Core Insights - Pagaya Technologies Ltd. (NASDAQ: PGY) is a global technology company focused on artificial intelligence infrastructure within the financial ecosystem, headquartered in New York and Tel Aviv [1] - The company reported earnings per share (EPS) of $0.36, which was below the estimated $0.75, indicating ongoing challenges in profitability [2][6] - PGY's revenue for the period was approximately $334.8 million, missing the estimated $349.5 million, suggesting potential growth concerns [3][6] Financial Metrics - The price-to-sales ratio of PGY is 0.91, indicating that the stock is valued at less than its sales, reflecting investor caution regarding future growth prospects [3] - The current ratio of 5.11 suggests good short-term liquidity, indicating that the company is well-positioned to meet its short-term obligations [4][6] - The debt-to-equity ratio of 1.71 highlights a higher level of debt compared to equity, which could pose risks if not managed carefully [4][6] - The enterprise value to sales ratio is 1.39, and the enterprise value to operating cash flow ratio is 8.84, suggesting challenges in generating cash flow from operations despite a higher valuation than sales [5]