HB Wealth Management LLC Makes New Investment in Repay Holdings Corporation (NASDAQ:RPAY)

Key Points

• HB Wealth Management LLC invested approximately $726,000 in Repay Holdings Corporation, acquiring 130,345 shares during the 1st quarter, representing about 0.13% ownership of the company.
• Repay reported a quarterly EPS of $0.22, missing analysts' expectation of $0.23, with revenue of $77.33 million, down 4.2% compared to last year.
• The company has authorized a $75 million share buyback program, allowing for the repurchase of up to 19% of its outstanding shares, indicating the board's belief in its stock's undervaluation.

HB Wealth Management LLC bought a new position in shares of Repay Holdings Corporation (NASDAQ:RPAY - Free Report) in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor bought 130,345 shares of the company's stock, valued at approximately $726,000. HB Wealth Management LLC owned 0.13% of Repay at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Quarry LP purchased a new position in Repay during the 4th quarter valued at about $27,000. Spire Wealth Management lifted its stake in Repay by 52.5% during the first quarter. Spire Wealth Management now owns 7,610 shares of the company's stock worth $42,000 after purchasing an additional 2,620 shares during the last quarter. Johnson Financial Group Inc. purchased a new stake in Repay during the fourth quarter worth approximately $47,000. Teacher Retirement System of Texas acquired a new position in Repay during the first quarter worth approximately $61,000. Finally, KLP Kapitalforvaltning AS acquired a new position in Repay during the fourth quarter worth approximately $111,000. 82.73% of the stock is owned by institutional investors and hedge funds.

Repay Price Performance

Repay stock traded down $0.09 during midday trading on Friday, reaching $4.83. 997,329 shares of the company were exchanged, compared to its average volume of 887,142. The company has a market capitalization of $480.30 million, a price-to-earnings ratio of -32.20 and a beta of 1.64. The firm's 50-day simple moving average is $4.91 and its 200-day simple moving average is $5.46. Repay Holdings Corporation has a 1 year low of $3.59 and a 1 year high of $9.75. The company has a debt-to-equity ratio of 0.65, a quick ratio of 3.71 and a current ratio of 3.71.

Repay (NASDAQ:RPAY - Get Free Report) last posted its quarterly earnings data on Monday, May 12th. The company reported $0.22 EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.01). The company had revenue of $77.33 million for the quarter, compared to analyst estimates of $76.06 million. Repay had a negative net margin of 4.16% and a positive return on equity of 8.49%. The company's revenue was down 4.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.23 EPS. On average, analysts anticipate that Repay Holdings Corporation will post 0.72 EPS for the current year.

Repay announced that its board has initiated a share repurchase plan on Monday, May 12th that authorizes the company to repurchase $75.00 million in shares. This repurchase authorization authorizes the company to buy up to 19% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, President Shaler Alias bought 15,378 shares of the stock in a transaction dated Thursday, May 15th. The stock was acquired at an average price of $3.93 per share, for a total transaction of $60,435.54. Following the completion of the purchase, the president owned 264,782 shares in the company, valued at $1,040,593.26. This represents a 6.17% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO John Andrew Sr. Morris bought 86,761 shares of the stock in a transaction dated Thursday, May 15th. The stock was bought at an average price of $3.89 per share, with a total value of $337,500.29. Following the purchase, the chief executive officer owned 86,761 shares of the company's stock, valued at approximately $337,500.29. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders have acquired 439,702 shares of company stock valued at $1,806,974 over the last 90 days. 12.00% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several research analysts have commented on RPAY shares. Keefe, Bruyette & Woods cut their price target on Repay from $6.50 to $4.50 and set a "market perform" rating on the stock in a research report on Tuesday, May 13th. BMO Capital Markets dropped their target price on Repay from $7.00 to $5.00 and set a "market perform" rating on the stock in a report on Tuesday, May 13th. UBS Group dropped their target price on Repay from $7.50 to $4.50 and set a "neutral" rating on the stock in a report on Tuesday, May 13th. Citigroup dropped their target price on Repay from $8.00 to $4.50 and set a "neutral" rating on the stock in a report on Monday, May 19th. Finally, Morgan Stanley set a $4.50 target price on Repay in a report on Wednesday, May 14th. Five investment analysts have rated the stock with a hold rating and five have given a buy rating to the company's stock. According to data from MarketBeat, Repay currently has an average rating of "Moderate Buy" and a consensus price target of $7.90.

Repay Company Profile

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods.