Pagaya's Hidden Value: Top Reasons To Buy This Undervalued Stock

2026-03-13 05:32:51 ET

My May 2025 buy recommendation for Pagaya Technologies Ltd. ( PGY ) was based on the belief that the market undervalued the company's move toward GAAP (generally accepted accounting principles) profitability. That assessment looked correct for several months. The stock rose 163% from May 28 to reach $44.99 on September 18, 2025. However, the stock’s rise eventually ran into a brick wall. The market became unwilling to rate the stock at a premium valuation when the massive expected revenue growth from Artificial Intelligence ("AI")-powered lending failed to materialize, and concerns about rising loan delinquencies emerged in September. It also didn't help that the stock began losing institutional support.

Ark Investment Management's July 30, 2025, 13-F filing (second quarter 2025) showed it had 172,750 shares of Pagaya. In its November 12, 2025, 13-F filing (Third quarter 2025), Ark Investment Management showed only 66,533 shares, indicating it sold 106,217 shares sometime in the third quarter. The market wasn’t particularly pleased that Cathy Wood’s Ark Investment sold a bunch of shares, as it hurt bullish investors' sentiment toward the stock....

Read the full article on Seeking Alpha

For further details see: