On June 6, 2023, CEO and 10% Owner Todd Schwartz bought 12,690 shares of OppFi Inc (OPFI, Financial), a leading financial technology platform that powers banks to help the everyday consumer gain access to credit. This recent purchase is part of a series of insider transactions that have taken place over the past year.
Who is Todd Schwartz?
Todd Schwartz is the CEO and a 10% owner of OppFi Inc. He has been instrumental in the company's growth and success, leading the organization through various strategic initiatives and partnerships. With a strong background in finance and technology, Schwartz has been able to leverage his expertise to drive OppFi's mission of providing accessible and affordable financial products to consumers who are underserved by traditional banking institutions.
OppFi Inc's Business Description
OppFi Inc is a financial technology company that partners with banks to provide credit access to consumers who are not well-served by traditional banking institutions. The company's platform uses advanced algorithms and data analytics to assess the creditworthiness of applicants, enabling them to offer loans to individuals with less-than-perfect credit scores. OppFi's innovative approach to lending has helped millions of consumers gain access to affordable credit, improving their financial health and overall well-being.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, Todd Schwartz has purchased a total of 351,196 shares and has not sold any shares. This indicates a strong belief in the company's future prospects and potential for growth. The insider transaction history for OppFi Inc shows a total of 69 insider buys and 5 insider sells over the past year.
The stock price of OppFi Inc has experienced fluctuations over the past year, but the overall trend of insider buying suggests that insiders believe the company's stock is undervalued and has the potential for growth. On the day of Todd Schwartz's recent purchase, shares of OppFi Inc were trading at $2.06 apiece, giving the stock a market cap of $33.4 million.
Valuation
The price-earnings ratio of OppFi Inc is 54.75, which is higher than the industry median of 12.98 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical trading levels.
However, it is essential to consider the company's growth potential and unique business model when evaluating its valuation. The GF Value, an intrinsic value estimate developed by GuruFocus, takes into account historical multiples, a GuruFocus adjustment factor based on past returns and growth, and future estimates of business performance from Morningstar analysts. This comprehensive approach to valuation provides a more accurate picture of the company's true worth and potential for growth.
In conclusion, the recent insider buying activity by CEO Todd Schwartz and other insiders at OppFi Inc indicates a strong belief in the company's future prospects and potential for growth. While the stock's current valuation may appear high compared to industry peers and historical levels, investors should consider the company's unique business model and growth potential when evaluating its investment potential.
