Priority Technology (NASDAQ:PRTH) Receives "Hold" Rating from Lake Street Capital

Key Points

• Lake Street Capital reaffirmed its “Hold” rating on Priority Technology but cut its price target from $13.00 to $8.05, implying approximately 3.67% upside from the prior close. Analysts overall maintain a consensus “Hold” rating with an $8.42 target.
• Priority Technology shares rose to $7.76 in heavy trading, near the company’s 52-week high of $7.91. The stock has a $640.15 million market capitalization and trades above both its 50-day and 200-day moving averages.
• The company exceeded quarterly expectations, reporting adjusted EPS of $0.29 versus a $0.26 consensus and revenue of $262.26 million versus $257.81 million expected. Separately, an announced $1.6 billion take-private transaction would pay shareholders $8.05 per share, subject to shareholder approval and customary closing conditions.

Priority Technology (NASDAQ:PRTH - Get Free Report)'s stock had its "hold" rating reaffirmed by investment analysts at Lake Street Capital in a research note issued to investors on Monday, Benzinga reports. They presently have a $8.05 price objective on the stock, down from their prior price objective of $13.00. Lake Street Capital's price target points to a potential upside of 3.67% from the company's previous close.

Other research analysts have also issued reports about the company. Weiss Ratings reissued a "hold (c)" rating on shares of Priority Technology in a research report on Wednesday, June 24th. Wall Street Zen cut shares of Priority Technology from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Zacks Research downgraded shares of Priority Technology from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. Alliance Global Partners lowered shares of Priority Technology from a "buy" rating to a "neutral" rating and set a $7.00 price objective on the stock. in a research report on Thursday, August 6th. Finally, Keefe, Bruyette & Woods dropped their price target on Priority Technology from $7.50 to $6.50 and set a "market perform" rating for the company in a report on Friday, August 7th. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $8.42.

Priority Technology Price Performance

Shares of NASDAQ PRTH traded up $1.94 during mid-day trading on Monday, hitting $7.76. The company had a trading volume of 15,230,735 shares, compared to its average volume of 445,604. The company has a market capitalization of $640.15 million, a PE ratio of 11.25 and a beta of 1.55. The business's 50-day simple moving average is $5.95 and its 200 day simple moving average is $5.82. Priority Technology has a 1-year low of $4.44 and a 1-year high of $7.91.

Priority Technology (NASDAQ:PRTH - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.26 by $0.03. The company had revenue of $262.26 million during the quarter, compared to analysts' expectations of $257.81 million. Priority Technology had a net margin of 5.61% and a negative return on equity of 104.91%. On average, analysts expect that Priority Technology will post 1.23 EPS for the current year.

Institutional Trading of Priority Technology

A number of institutional investors have recently modified their holdings of the business. Aaron Wealth Advisors LLC bought a new stake in shares of Priority Technology during the first quarter valued at about $50,000. Sequoia Financial Advisors LLC bought a new position in shares of Priority Technology in the second quarter valued at approximately $67,000. The Manufacturers Life Insurance Company bought a new position in shares of Priority Technology in the second quarter valued at approximately $69,000. One68 Global Capital LLC purchased a new position in Priority Technology during the second quarter valued at approximately $73,000. Finally, AXQ Capital LP purchased a new position in Priority Technology during the fourth quarter valued at approximately $80,000. 11.52% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Priority Technology

Here are the key news stories impacting Priority Technology this week:

• Positive Sentiment: The all-cash transaction values Priority Technology at approximately $1.6 billion, with public shareholders set to receive $8.05 per share. The defined cash payout is driving buying interest and helped the stock trade near the proposed consideration. Priority Technology definitive agreement announcement
• Positive Sentiment: The transaction has board backing and is led by the company’s existing chairman and CEO, potentially reducing execution uncertainty while giving investors a clear exit value. Reuters report on Priority Technology go-private deal
• Neutral Sentiment: The deal remains subject to customary closing conditions and shareholder approval. Trading in PRTH was temporarily halted pending the announcement, and the stock’s near-term performance is likely to remain tied largely to the $8.05 offer price rather than operating results. Priority Technology take-private agreement terms
• Negative Sentiment: Ademi LLP and Johnson Fistel announced investigations into whether the offer fairly values Priority Technology and whether the board adequately protected shareholders. Their reviews could create delay, litigation risk, or pressure for a higher bid, although no wrongdoing has been established. Ademi investigation into Priority Technology buyout

Priority Technology Company Profile

Priority Technology Holdings, Inc NASDAQ: PRTH is a payments technology company that provides commerce and payment-processing solutions to businesses, financial institutions and software providers. Its platform supports card payments, electronic payments and other transaction types, helping clients accept, manage and reconcile payments across in-person, online and business-to-business channels.

The company offers merchant acquiring and payment enablement services, including point-of-sale and e-commerce payment acceptance, payment gateway capabilities, automated clearing house (ACH) transactions, electronic invoicing and accounts-payable solutions.

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