FlexShopper Inc. (NASDAQ:FPAY) Could Be a Company to Keep Your Eyes On

Good Morning Trader,

We’re revisiting a developing situation that we’ve been monitoring for some time now, FlexShopper Inc. (NASDAQ:FPAY), which our team believes to be a high-potential addition to your watchlist. 

Previously alerted on October 24, 2024, NASDAQ:FPAY has continued to showcase compelling performance indicators and positive market signals, making it an excellent candidate for those seeking high-growth opportunities in the leasing sector. Our deep-dive into NASDAQ:FPAY’s fundamentals, technical metrics, and recent developments underscores why this stock remains an attractive watchlist suggestion.

FlexShopper Inc. specializes in providing innovative lease-to-own (LTO) solutions, primarily targeting underserved consumers who lack access to traditional credit. By offering affordable payment plans on a wide range of durable goods, NASDAQ:FPAY has tapped into a sizeable market with substantial growth potential. The company’s model is increasingly relevant in today’s economic climate, where consumer demand for flexible payment solutions remains robust.

Recent data indicates that FlexShopper’s leasing platform is experiencing solid adoption, particularly through its partnerships with large retailers and its digital presence. This focus on omnichannel expansion positions the company well to capture additional market share.

Recent Developments and Growth Drivers

1. Expansion of Retail Partnerships: FlexShopper has recently strengthened its partnership portfolio, enabling it to reach more consumers and drive transaction volume.
2. Strong Financial Results: The company’s Q3 financial results indicated a notable increase in transaction volume and recurring revenue, showcasing consistent growth and sustainable profitability.
3. Tech Innovation in Payment Solutions: By integrating advanced technologies to streamline the LTO experience, NASDAQ:FPAY is well-equipped to cater to tech-savvy consumers seeking fast and accessible leasing options.

Our technical assessment reveals that NASDAQ:FPAY is currently trading near a crucial support level, suggesting a potential breakout. Indicators from TradingView and Barchart align with this bullish sentiment, showing strong buy signals across multiple timeframes.

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Key Technical Indicators

• Moving Averages: FlexShopper’s 50-day and 200-day moving averages are converging, often an early indicator of upward momentum. In addition, the 20-day moving average has recently crossed above the 50-day, creating a short-term bullish signal.
• Relative Strength Index: The stock’s RSI hovers around 55, signaling that it is neither overbought nor oversold. This balanced RSI suggests there is room for further appreciation without encountering resistance due to overbought conditions.
• Moving Average Convergence Divergence: NASDAQ:FPAY’s MACD has shifted to positive territory, further signaling that bullish momentum could sustain in the coming weeks.
• Volume Profile: A recent increase in trading volume highlights growing investor interest and reinforces the strength of NASDAQ:FPAY’s upward trajectory.

Notably, recent assessments from Barchart and TradingView highlight NASDAQ:FPAY as a "Strong Buy." Analysts cite FlexShopper’s strong earnings growth, expanding partnerships, and proven business model as core drivers. Barchart analysts have expressed optimism about the company’s consistent revenue growth and the strategic moves to enhance its consumer reach.

Barchart analysts had one holdout - with a moderate buy recommendation - but YOY financials reflect a 15% increase, so this is still a ground floor potential entry in the eyes of our team.

TradingView analysts also favor the stock due to its promising technical signals and undervalued trading position compared to its peers in the leasing space. These favorable outlooks strengthen our view of NASDAQ:FPAY as a high-value opportunity.

In Recent News

FlexShopper Inc. has announced a strategic partnership with PayPossible, a leading waterfall financing platform, to expand lease-to-own (LTO) services for retail merchants. Through this collaboration, FlexShopper will integrate its flexible payment options directly into PayPossible’s platform, enabling a wider range of consumers to access financing solutions tailored to their needs.

A central part of this partnership is FlexShopper’s adoption of PayPossible as its marketplace waterfall solution. FlexShopper.com will now offer users a streamlined application process that connects them with the most suitable financing option based on their financial profile, maximizing conversion rates and enhancing the shopping experience.

Russ Heiser, CEO of FlexShopper, sees this partnership as a key step in expanding financing options across both online and physical retail locations, including significant brands like RANDYS Worldwide, a prominent U.S. automotive supplier with over 20,000 distribution points. Through this alliance, FlexShopper gains broader access to the automotive market, while RANDYS Worldwide’s network of brands—including Yukon Gear & Axle, ICON Vehicle Dynamics, and Cognito Motorsports—benefits from PayPossible's flexible payment solutions to drive customer satisfaction and sales growth.

PayPossible’s platform supports various consumer financing options by assessing credit profiles to match consumers with optimal financing offers, thus catering to a diverse audience from prime to nonprime borrowers. Lance Taylor, Chief Revenue Officer at PayPossible, expressed excitement over the expanded range of payment solutions now available to FlexShopper’s monthly visitors, aiming to elevate conversion rates and customer convenience.

The integration of FlexShopper’s LTO services through PayPossible reflects FlexShopper’s commitment to providing accessible payment alternatives, aligning with its strategic goals to grow revenue and customer base. This collaboration positions both companies to meet growing consumer demand for flexible financing and underscores FlexShopper’s ongoing expansion into new retail segments.

There’s been some interesting movement with respect to current stockholders as well…

FlexShopper Inc. announced today that it has filed a registration statement on Form S-1 with the Securities and Exchange Commission (SEC) for a proposed rights offering. The offering will grant stockholders non-transferable subscription rights to purchase up to 35,000,000 units. Each unit includes one share of common stock and three short-term rights to acquire additional shares at various discounted market prices.

This offering reflects strong internal confidence, with company officers and directors indicating their intention to participate.

Under the proposal, each stockholder on a future record date (yet to be determined) will receive two unit subscription rights for every common share owned on the record date, free of charge. The official record date and timeline for the rights distribution, subscription period, expiration, and unit pricing will be outlined in the final prospectus upon the registration statement's effectiveness.

For stockholders looking to deepen their investment, the offering includes an oversubscription option. Stockholders who fully exercise their subscription rights may request additional units, subject to availability, with any unclaimed units distributed on a pro rata basis.

FlexShopper plans to use the proceeds from this rights offering to strategically repurchase over 90% of its Series 2 convertible preferred stock, reduce outstanding debt, and pursue potential acquisitions of complementary payment solutions companies. Remaining funds will support general corporate initiatives.

Why NASDAQ:FPAY Belongs on Your Watchlist

1. Market Demand: FlexShopper addresses a critical need in the consumer finance market, providing a practical alternative to traditional credit.
2. Growth Potential: With strong financial performance, expanding retail partnerships, and advanced technology integration, NASDAQ:FPAY is poised for significant expansion.
3. Solid Technicals: Positive technical indicators such as moving averages, RSI, and MACD suggest sustained upward momentum.

FlexShopper Inc. (NASDAQ: NASDAQ:FPAY) presents a unique opportunity for investors looking for growth in the financial technology sector. The company’s consistent expansion, solid technical indicators, and favorable analyst assessments make it a strong contender for your portfolio. We believe NASDAQ:FPAY’s potential for appreciation is well-supported by both technicals and fundamentals.

We encourage you to add FlexShopper Inc. to your watchlist as a promising prospect, and will continue to keep you apprised of this developing situation.

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