Pagaya Insider Sells $1.7 Million in Stock as Shares Significantly Outperform the Market

Tami Rosen, the chief development officer of Pagaya Technologies Ltd. (NASDAQ:PGY), executed an open-market sale of 7,561 shares on Dec. 19, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($30.73).

Key questions

• How significant was this trade relative to Rosen's prior selling activity?
  After the transaction, Rosen reported holding 37,544 Class A ordinary shares directly.
• How did trade size compare to Rosen's historical pattern?
  The 7,561-share sale was smaller than the median recent-period sale of 13,842 shares.
• Were options or indirect holdings involved in this transaction?
  No; the sale was strictly direct open-market equity, with no activity in indirect accounts or via derivative exercises.
• What market context surrounded the sale?
  The transaction occurred as shares were priced at around $30.73 per share, above the Dec. 19 market close of $22.85, following a one-year total return of 118.28% as of the transaction date.

Company overview

* 1-year price change calculated using Dec. 19, 2025 as the reference date.

Company snapshot

• Pagaya Technologies develops and deploys proprietary artificial intelligence software for loan origination and asset management, generating revenue primarily from technology solutions provided to financial partners.
• The company operates a platform-based business model, monetizing through transaction fees and software licensing with financial institutions and fintech partners.
• It serves high-growth fintech companies, incumbent banks, auto finance providers, and brokers across Israel, the United States, and the Cayman Islands.

Pagaya Technologies Ltd. leverages advanced AI and data-driven infrastructure to streamline loan origination and asset management for institutional clients. The company’s scalable platform enables partners to optimize credit decisioning and expand access to financial products. Pagaya’s competitive edge lies in its proprietary technology and broad network of financial partnerships, positioning it as a key enabler in the evolving fintech ecosystem.

What this transaction means for investors

Pagaya’s shares have far outpaced the broader market over the past year, reflecting a sharp operational turnaround and growing confidence in the company’s AI-driven credit platform. However, it’s important to note here that the Dec. 19 sale was executed under a pre-established Rule 10b5-1 trading plan, removing discretion from the timing. The Form 4 also notes the transaction did not involve derivatives or indirect entities, underscoring a straightforward reduction of a modest position rather than a structural shift in ownership. After the sale, Rosen still retained a relatively meaningful equity stake.

Operationally, Pagaya’s most recent quarter supports the stock’s strong run. The company posted GAAP net income of $23 million, a $90 million year-over-year improvement, alongside record revenue of $350 million and adjusted EBITDA of $107 million, which climbed 91% year over year. Management also raised full-year guidance across revenue, profitability, and network volume, reinforcing that recent gains were driven by execution rather than multiple expansion alone.

Ultimately, insider sales tied to trading plans amid improving profitability and raised guidance do not, on their own, undermine the broader thesis. The more relevant signal remains whether Pagaya can sustain disciplined underwriting and operating leverage as it scales.

Glossary

Open-market sale: The direct sale of securities on a public exchange, not through private transactions or pre-arranged deals.
Direct equity position: Shares owned personally by an individual, not through trusts, funds, or other entities.
SEC Form 4: A regulatory filing disclosing insider trades by company officers, directors, or major shareholders.
Weighted average price: The average price per share, adjusted for the number of shares sold at each price.
Systematic liquidation: The planned, gradual sale of holdings over a period, rather than all at once.
Derivative instruments: Financial contracts whose value is based on underlying assets, such as options or futures.
Indirect entities: Accounts or organizations through which an individual holds securities, rather than owning them directly.
Transaction value: The total dollar amount received from selling securities in a specific transaction.
Post-transaction value: The value of an individual's holdings after a trade or series of trades is completed.
One-year total return: The combined gain from price appreciation and dividends over the past year, expressed as a percentage.
Proprietary technology: Technology owned and controlled by a company, often protected by patents or trade secrets.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Pagaya Technologies. The Motley Fool has a disclosure policy.