Pagaya Technologies Ltd (NASDAQ: PGY) 

Pagaya Technologies Ltd (NASDAQ: PGY) is an Israel-based company. It is primarily engaged in financial technology (FinTech) industry. The Company develops data science, machine learning and AI technology (Artificial Intelligence) analytics, enabling accurate, real-time customer credit assessments. 

Fundamental Observation 

Pagaya has reported its Q3 2021 results, with network volume of $2.4bn growing by 11% YoY. The company's existing partners saw personal loan network volume growth of 15% and point-of-sale network volume growth of 67% YoY. Pagaya has onboarded a top 5 bank by total assets in its POS vertical. Total revenue and other income of $257m increased by 21% YoY, driven by a 24% increase in revenue from fees. Pagaya's GAAP operating income grew by $22m YoY. Its FRLPC as a % of network volume reached a record 4.3%. The company's adjusted EBITDA grew by $28m YoY. Pagaya has reached its lowest risk retention level in two years, and refinanced high-cost borrowings to reduce interest expense. 

Technical Observation (on the daily chart): 

PGY's stock price is currently experiencing a general decline and has hit resistance at crucial levels, resulting in a downward trend. It appears to be entering an extended consolidation phase before any possible upward movement. The 14-day Relative Strength Index (RSI) is still below the midpoint, indicating bearish sentiment. Furthermore, the stock is trading beneath both its 21-period and 50-period Simple Moving Averages (SMAs), which adds to the negative outlook. Key support and resistance levels could also act as significant demand and supply zones.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Pagaya Technologies Ltd (NASDAQ: PGY) at its current market price of USD 9.81 as of Dec 16, 2024 (8:10 am EST). 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The volume colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

Past performance is neither an indicator nor a guarantee of future performance. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is of Dec 16, 2024.  The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.