DA Davidson Reiterates Buy Rating for Repay (NASDAQ:RPAY)

Key Points

• DA Davidson reiterated a Buy rating on Repay with an $8.00 price target, implying roughly a 96% upside from the recent close.
• Analyst views are mixed and MarketBeat's consensus is a Hold with a $5.53 price target after several firms (Canaccord, Morgan Stanley, Benchmark, UBS, Weiss) recently adjusted ratings or lowered targets.
• Shares traded at $4.08 (market cap ~$371.5M); Repay missed quarterly EPS by $0.02 ($0.19 vs. $0.21) while revenue of $78.6M slightly beat estimates, and the company reported a negative net margin of about 83% despite a positive ROE of 9.3%.

Repay (NASDAQ:RPAY - Get Free Report)'s stock had its "buy" rating reissued by analysts at DA Davidson in a research note issued to investors on Tuesday,Benzinga reports. They currently have a $8.00 price target on the stock. DA Davidson's price target suggests a potential upside of 96.32% from the stock's previous close.

Several other brokerages also recently weighed in on RPAY. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Repay in a report on Monday, December 29th. Canaccord Genuity Group lowered their price objective on Repay from $12.00 to $8.00 and set a "buy" rating on the stock in a research report on Monday, March 16th. Morgan Stanley dropped their price objective on Repay from $4.00 to $3.50 and set an "equal weight" rating for the company in a research note on Tuesday, March 10th. Benchmark decreased their target price on Repay from $8.00 to $6.00 and set a "buy" rating on the stock in a research note on Tuesday, March 10th. Finally, UBS Group lowered their price target on Repay from $4.00 to $3.50 and set a "neutral" rating on the stock in a report on Wednesday, March 11th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $5.53.

Repay Stock Performance

Shares of RPAY stock traded up $0.04 during trading hours on Tuesday, reaching $4.08. 506,863 shares of the company traded hands, compared to its average volume of 1,596,511. The firm has a 50-day moving average price of $3.03 and a 200 day moving average price of $3.49. The company has a market cap of $371.52 million, a P/E ratio of -1.34 and a beta of 1.60. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.82 and a quick ratio of 0.82. Repay has a 12-month low of $2.30 and a 12-month high of $6.05.

Repay (NASDAQ:RPAY - Get Free Report) last released its earnings results on Monday, March 9th. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.02). The firm had revenue of $78.59 million during the quarter, compared to analysts' expectations of $76.79 million. Repay had a positive return on equity of 9.30% and a negative net margin of 83.01%.The company's revenue was up .4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.24 earnings per share. As a group, sell-side analysts predict that Repay will post 0.69 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in RPAY. American Century Companies Inc. lifted its position in shares of Repay by 3.5% in the third quarter. American Century Companies Inc. now owns 6,667,792 shares of the company's stock worth $34,873,000 after buying an additional 227,349 shares in the last quarter. Private Management Group Inc. raised its holdings in shares of Repay by 30.5% during the 4th quarter. Private Management Group Inc. now owns 5,412,492 shares of the company's stock worth $19,756,000 after acquiring an additional 1,263,399 shares in the last quarter. Sunriver Management LLC boosted its position in shares of Repay by 11.0% during the 4th quarter. Sunriver Management LLC now owns 4,361,524 shares of the company's stock valued at $15,920,000 after acquiring an additional 433,524 shares during the last quarter. Whetstone Capital Advisors LLC boosted its position in shares of Repay by 1,832.1% during the 4th quarter. Whetstone Capital Advisors LLC now owns 2,728,627 shares of the company's stock valued at $9,959,000 after acquiring an additional 2,587,400 shares during the last quarter. Finally, Portolan Capital Management LLC purchased a new position in shares of Repay in the third quarter valued at $11,417,000. Hedge funds and other institutional investors own 82.73% of the company's stock.

About Repay

Repay Holdings Corp. Nasdaq: RPAY is a specialized financial technology company that delivers integrated payment solutions to businesses operating within key vertical markets. The company's platform enables merchants and service providers to accept a range of payment types, including credit and debit cards, automated clearing house (ACH) transfers and electronic checks. Repay's offerings are designed to seamlessly integrate with third-party software applications, such as enterprise resource planning, customer relationship management and point-of-sale systems, empowering industries such as utilities, telecommunications, automotive finance, healthcare, insurance, property management and education.

Tracing its roots to the formation of Pinnacle Payment Systems in 1997, Repay expanded its capabilities through strategic acquisitions, including Southeastern Integrated Solutions and Payliance, before completing a business combination with Thunder Bridge Acquisition II in 2019 to become a publicly traded company on the Nasdaq.

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