AGBA Group Reports Irregular Trading Activities to SEC and Nasdaq

Hong Kong-based AGBA Group has reported unusual trading activities affecting more than 100% of its freely tradeable shares to the Securities and Exchange Commission (SEC) and Nasdaq. This follows a period of abnormal trading patterns that began on April 28, 2023.

The company’s primary shareholder, TAG Holdings Limited, which controls 55,500,000 ordinary shares or approximately 82.3% of AGBA’s total outstanding shares since its NASDAQ listing in November 2022, has not divested any of its holdings. These shares are subject to the Securities Act of 1933, which mandates registration or exemption for public sales.

As per recent data, AGBA Group has a market capitalization of approximately $787.83 million and a price-to-earnings (P/E) ratio of 8.54. For the last twelve months (LTMQ2 2023), the company reported revenue of $256.47 million, reflecting a growth rate of 9.18%. However, the revenue for the second quarter of FY2023 declined by 2.9%. The adjusted operating income for the same period is noted at $118.6 million, resulting in an operating income margin of 46.24%. The company’s shares have exhibited a return of -1.06% over the past week, -8.24% for the month, and -23.3% over the past year.

AGBA Group demonstrates high earnings quality, with free cash flow exceeding net income and a strong return on invested capital. The company has increased its dividend for ten consecutive years while maintaining dividend payments for 31 years. Although it trades at a relatively low P/E ratio in comparison to near-term earnings growth, the company faces challenges with weak gross profit margins. Stockholders are experiencing high returns on book equity, and despite trading near a 52-week low, analysts forecast profitability for the company this year. It has remained profitable over the preceding twelve months.

To safeguard its shareholders, AGBA Group is actively monitoring these irregularities and providing consistent updates. The company has also issued a forward-looking Safe Harbor Statement in light of recent events.

This article was created with the assistance of AI and has been reviewed by an editor.