Pagaya Closes $800 Million ABS Transaction, Largest Since November 2024
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy PGY?
Source: Newsfilter
- Record Transaction Size: Pagaya successfully closed an $800 million AAA-rated personal loan ABS transaction (PAID 2026-1), marking the largest securitization since November 2024 and reinforcing its leadership in the U.S. personal loan ABS market.
- Strong Investor Participation: The transaction attracted 32 unique investors, with the majority being repeat participants, highlighting the sustained demand for Pagaya's AI-enabled assets in the consumer credit ABS market, as the deal size was upsized by 33% from its initial $600 million target.
- Ongoing Market Demand: Since 2018, Pagaya has issued over $34.5 billion across 85 ABS transactions, engaging more than 150 institutional investors, demonstrating its robust financing capabilities across personal loans, auto, and POS programs.
- Strategic Execution Capability: Pagaya's Head of Capital Markets noted that this transaction reflects steady institutional demand for well-structured consumer credit ABS, with the company's programmatic issuance approach and network scale enabling consistent access to the securitization market across varying market conditions.
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Analyst Views on PGY
Wall Street analysts forecast PGY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PGY is 43.33 USD with a low forecast of 35.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.650
Low
35.00
Averages
43.33
High
54.00
Current: 16.650
Low
35.00
Averages
43.33
High
54.00
About PGY
Pagaya Technologies Ltd 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. Company's customers are lending companies that, by connecting to the AI Pagaya network, have the opportunity to discover and approve new customers that meet their credit criteria. Thanks to the Company's solutions, its customers gains a customer without undue risk. Pagaya Technologies Ltd delivers technology that provides loan assistance such as personal, car and credit card loans. The Company serves its clients all over the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pagaya Closes $800 Million ABS Transaction, Largest Since November 2024
- Record Transaction Size: Pagaya successfully closed an $800 million AAA-rated personal loan ABS transaction (PAID 2026-1), marking the largest securitization since November 2024 and reinforcing its leadership in the U.S. personal loan ABS market.
- Strong Investor Participation: The transaction attracted 32 unique investors, with the majority being repeat participants, highlighting the sustained demand for Pagaya's AI-enabled assets in the consumer credit ABS market, as the deal size was upsized by 33% from its initial $600 million target.
- Ongoing Market Demand: Since 2018, Pagaya has issued over $34.5 billion across 85 ABS transactions, engaging more than 150 institutional investors, demonstrating its robust financing capabilities across personal loans, auto, and POS programs.
- Strategic Execution Capability: Pagaya's Head of Capital Markets noted that this transaction reflects steady institutional demand for well-structured consumer credit ABS, with the company's programmatic issuance approach and network scale enabling consistent access to the securitization market across varying market conditions.
See More
PGY Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for PGY's $17.00 put option is $4.30, and if an investor sells this contract, their effective purchase price drops to $12.70, providing an attractive 10% discount compared to the current price of $18.92, appealing to potential buyers of PGY.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 25.29% return on cash commitment, equating to an annualized yield of 18.50%, highlighting the YieldBoost potential that attracts income-focused investors.
- Call Option Return Expectations: The $25.00 call option for PGY has a current bid of $5.00, and if an investor buys shares at $18.92 and sells this contract, they could achieve a total return of 58.56% if the stock is called away by June 2027, indicating strong profit potential.
- Risk-Reward Trade-off: Given that the $25.00 strike price represents a 32% premium over the current stock price, with a 37% chance of the call option expiring worthless, investors could retain both their shares and the premium collected, enhancing investment flexibility.
See More
Pagaya Partners with Sound Point for $720M Loan Deal
- First Forward-Flow Deal: Pagaya has entered into an agreement with Sound Point Capital to purchase up to $720 million in point-of-sale loans, marking its first forward-flow deal for POS assets and enhancing the diversity of its funding channels.
- Strong Institutional Demand: This transaction highlights the robust demand from institutional investors for Pagaya's POS assets, indicating the company's potential and market recognition in expanding consumer credit opportunities.
- Strategic Capital Connection: Pagaya President Sanjiv Das stated that this partnership connects capital with the responsible expansion of consumer credit opportunities, underscoring the strategic significance of the company in meeting market demand.
- Slight Stock Increase: Following the announcement, Pagaya's shares edged up 0.4% in midday trading, reflecting a positive market reaction to the deal and an increase in investor confidence.
See More
Potential Market Leaders: 5 Growth Stocks to Keep an Eye on for 2026
Growth and Mid-Cap Stocks: Growth and mid-cap stocks often share market space, typically representing early-stage companies that can deliver significant upside if execution is successful, but they also carry higher volatility compared to established large-cap leaders.
DLocal's Performance: DLocal, a payments company, has shown impressive revenue growth and operational performance, enabling global merchants to accept local payment methods across various regions, and has recently stabilized after a volatile period post-IPO.
Pagaya Technologies: Pagaya focuses on AI-driven credit underwriting, partnering with banks to enhance loan approval rates while managing risk through machine learning, and has demonstrated strong revenue growth and profitability in recent quarters.
Nebius Group's Growth Potential: Nebius Group is recognized for its exceptional growth potential in AI infrastructure, with a diversified ecosystem that includes AI cloud computing and autonomous vehicle technology, positioning itself as a leading mid-cap growth story in the market.
See More
Pagaya Technologies' CDO Sells 7,561 Shares for $232,400
- Insider Trading: Tami Rosen, Pagaya's Chief Development Officer, executed an open-market sale of 7,561 shares on December 19 at an average price of $30.73 per share, totaling $232,400, indicating her continued confidence in the company's prospects.
- Shareholding Status: Post-transaction, Rosen retains 37,544 shares directly, although this sale was smaller than her recent average of 13,842 shares, she still maintains a significant equity stake.
- Market Performance: Pagaya's stock has achieved a remarkable 118.28% total return over the past year, reflecting strong operational performance in its AI-driven credit platform, which has bolstered investor confidence.
- Profitability Improvement: The company reported a GAAP net income of $23 million, a $90 million year-over-year improvement, and management raised full-year guidance across revenue and profitability, indicating substantial progress in execution and operational efficiency.
See More
Pagaya Technologies CDO Sells 7,561 Shares for $232,383.55
- Insider Sale: Tami Rosen, the Chief Development Officer of Pagaya Technologies, sold 7,561 shares on December 19 for $232,383.55, indicating a cautious approach to her equity position amid a strong operational backdrop.
- Equity Retention: Post-sale, Rosen retains 37,544 Class A ordinary shares, reflecting her ongoing confidence in the company's future despite the partial divestment.
- Strong Performance: Pagaya recently reported a GAAP net income of $23 million, a $90 million year-over-year improvement, alongside record revenue of $350 million, showcasing robust growth in its AI-driven credit platform.
- Market Confidence: Despite the insider sale, Pagaya's stock has outperformed the broader market over the past year, indicating strong investor confidence in its profitability and growth prospects, especially following management's raised full-year guidance.
See More
Pagaya Closes $800 Million ABS Transaction, Largest Since November 2024
- Record Transaction Size: Pagaya successfully closed an $800 million AAA-rated personal loan ABS transaction (PAID 2026-1), marking the largest securitization since November 2024 and reinforcing its leadership in the U.S. personal loan ABS market.
- Strong Investor Participation: The transaction attracted 32 unique investors, with the majority being repeat participants, highlighting the sustained demand for Pagaya's AI-enabled assets in the consumer credit ABS market, as the deal size was upsized by 33% from its initial $600 million target.
- Ongoing Market Demand: Since 2018, Pagaya has issued over $34.5 billion across 85 ABS transactions, engaging more than 150 institutional investors, demonstrating its robust financing capabilities across personal loans, auto, and POS programs.
- Strategic Execution Capability: Pagaya's Head of Capital Markets noted that this transaction reflects steady institutional demand for well-structured consumer credit ABS, with the company's programmatic issuance approach and network scale enabling consistent access to the securitization market across varying market conditions.
See More
PGY Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for PGY's $17.00 put option is $4.30, and if an investor sells this contract, their effective purchase price drops to $12.70, providing an attractive 10% discount compared to the current price of $18.92, appealing to potential buyers of PGY.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 25.29% return on cash commitment, equating to an annualized yield of 18.50%, highlighting the YieldBoost potential that attracts income-focused investors.
- Call Option Return Expectations: The $25.00 call option for PGY has a current bid of $5.00, and if an investor buys shares at $18.92 and sells this contract, they could achieve a total return of 58.56% if the stock is called away by June 2027, indicating strong profit potential.
- Risk-Reward Trade-off: Given that the $25.00 strike price represents a 32% premium over the current stock price, with a 37% chance of the call option expiring worthless, investors could retain both their shares and the premium collected, enhancing investment flexibility.
See More
Pagaya Partners with Sound Point for $720M Loan Deal
- First Forward-Flow Deal: Pagaya has entered into an agreement with Sound Point Capital to purchase up to $720 million in point-of-sale loans, marking its first forward-flow deal for POS assets and enhancing the diversity of its funding channels.
- Strong Institutional Demand: This transaction highlights the robust demand from institutional investors for Pagaya's POS assets, indicating the company's potential and market recognition in expanding consumer credit opportunities.
- Strategic Capital Connection: Pagaya President Sanjiv Das stated that this partnership connects capital with the responsible expansion of consumer credit opportunities, underscoring the strategic significance of the company in meeting market demand.
- Slight Stock Increase: Following the announcement, Pagaya's shares edged up 0.4% in midday trading, reflecting a positive market reaction to the deal and an increase in investor confidence.
See More
Potential Market Leaders: 5 Growth Stocks to Keep an Eye on for 2026
Growth and Mid-Cap Stocks: Growth and mid-cap stocks often share market space, typically representing early-stage companies that can deliver significant upside if execution is successful, but they also carry higher volatility compared to established large-cap leaders.
DLocal's Performance: DLocal, a payments company, has shown impressive revenue growth and operational performance, enabling global merchants to accept local payment methods across various regions, and has recently stabilized after a volatile period post-IPO.
Pagaya Technologies: Pagaya focuses on AI-driven credit underwriting, partnering with banks to enhance loan approval rates while managing risk through machine learning, and has demonstrated strong revenue growth and profitability in recent quarters.
Nebius Group's Growth Potential: Nebius Group is recognized for its exceptional growth potential in AI infrastructure, with a diversified ecosystem that includes AI cloud computing and autonomous vehicle technology, positioning itself as a leading mid-cap growth story in the market.
See More
Pagaya Technologies' CDO Sells 7,561 Shares for $232,400
- Insider Trading: Tami Rosen, Pagaya's Chief Development Officer, executed an open-market sale of 7,561 shares on December 19 at an average price of $30.73 per share, totaling $232,400, indicating her continued confidence in the company's prospects.
- Shareholding Status: Post-transaction, Rosen retains 37,544 shares directly, although this sale was smaller than her recent average of 13,842 shares, she still maintains a significant equity stake.
- Market Performance: Pagaya's stock has achieved a remarkable 118.28% total return over the past year, reflecting strong operational performance in its AI-driven credit platform, which has bolstered investor confidence.
- Profitability Improvement: The company reported a GAAP net income of $23 million, a $90 million year-over-year improvement, and management raised full-year guidance across revenue and profitability, indicating substantial progress in execution and operational efficiency.
See More
Pagaya Technologies CDO Sells 7,561 Shares for $232,383.55
- Insider Sale: Tami Rosen, the Chief Development Officer of Pagaya Technologies, sold 7,561 shares on December 19 for $232,383.55, indicating a cautious approach to her equity position amid a strong operational backdrop.
- Equity Retention: Post-sale, Rosen retains 37,544 Class A ordinary shares, reflecting her ongoing confidence in the company's future despite the partial divestment.
- Strong Performance: Pagaya recently reported a GAAP net income of $23 million, a $90 million year-over-year improvement, alongside record revenue of $350 million, showcasing robust growth in its AI-driven credit platform.
- Market Confidence: Despite the insider sale, Pagaya's stock has outperformed the broader market over the past year, indicating strong investor confidence in its profitability and growth prospects, especially following management's raised full-year guidance.
See More
