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Here’s Why Pagaya Technologies Stock Skyrocketed 130% on Wednesday

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Shares of Pagaya Technologies closed nearly 130% up on Wednesday on speculations of a possible takeover.

Updated July 24, 2022: On Friday, Pagaya doubled its price again. The stock has risen more than 347% in the past five days.

Shares of Israeli fintech company Pagaya Technologies Ltd. (NASDAQ: PGY) soared almost 130% on Wednesday to close at $6.20. The stock jumped on the news that the company filed a prospectus related to the sale of its shares. This led to the expectations of a potential takeover, which pushed the stock up.

According to the prospectus, Pagaya could offer up to 673 million or over 50% of its shares for sale. Viola Ventures and Aflac are major shareholders in the company.

Pagaya uses machine learning, big data analytics, and artificial intelligence to improve financial and lending processes. It was listed on the Nasdaq last month through a SPAC merger with EJF Acquisition Corp. at a valuation of $8.5 billion.

Hedge Funds Shy Away from Pagaya

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in PGY is currently Negative, as the cumulative change in holdings across all eight hedge funds that were active in the last quarter was a decrease of 1.3 million shares.

Pagaya to Announce Q2 Results Next Month

The Tel-Aviv-based company is scheduled to release its second-quarter results on August 16 after reporting outstanding numbers for 2021. Last year, Pagaya’s revenue increased almost five-fold year-over-year to $475 million from $99 million in 2020. The figure even surpassed its guidance by 17%.

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