PAR Technology (NYSE:PAR) Trading Down 13.4% on Disappointing Earnings

Key Points

• PAR Technology's shares fell by 13.4%, trading as low as $49.93, after closing at $58.03, indicating increased volatility in the company's stock performance.
• Equities analysts have mixed opinions on PAR Technology, with a consensus rating of "Moderate Buy" and target prices ranging from $65.00 to $90.00.
• The company reported an increase in revenue by 48.2% year-over-year, achieving $103.86 million despite posting a small loss in earnings per share.

Shares of PAR Technology Corporation (NYSE:PAR - Get Free Report) were down 13.4% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $49.93 and last traded at $50.27. Approximately 399,013 shares traded hands during trading, a decline of 8% from the average daily volume of 432,208 shares. The stock had previously closed at $58.03.

The software maker reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.01). The business had revenue of $112.40 million during the quarter, compared to analyst estimates of $111.02 million. PAR Technology had a negative return on equity of 3.90% and a negative net margin of 2.88%. The company's quarterly revenue was up 43.8% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.23) EPS.

Analyst Ratings Changes

Several research analysts have issued reports on PAR shares. The Goldman Sachs Group lifted their price target on shares of PAR Technology from $57.00 to $65.00 and gave the stock a "neutral" rating in a research report on Monday, May 12th. Needham & Company LLC restated a "buy" rating and issued a $90.00 price target on shares of PAR Technology in a research report on Friday, July 11th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat, PAR Technology has an average rating of "Moderate Buy" and an average price target of $79.86.

Insider Activity at PAR Technology

In other news, Director Douglas Gregory Rauch sold 1,000 shares of the business's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $69.98, for a total transaction of $69,980.00. Following the transaction, the director directly owned 11,760 shares in the company, valued at $822,964.80. The trade was a 7.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 3.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On PAR Technology

Several institutional investors and hedge funds have recently modified their holdings of PAR. Alliancebernstein L.P. lifted its stake in shares of PAR Technology by 3.1% in the 4th quarter. Alliancebernstein L.P. now owns 37,090 shares of the software maker's stock valued at $2,695,000 after purchasing an additional 1,110 shares during the last quarter. Envestnet Asset Management Inc. raised its position in shares of PAR Technology by 164.4% during the fourth quarter. Envestnet Asset Management Inc. now owns 30,177 shares of the software maker's stock valued at $2,193,000 after buying an additional 18,763 shares during the last quarter. Russell Investments Group Ltd. increased its stake in PAR Technology by 10,370.0% in the fourth quarter. Russell Investments Group Ltd. now owns 8,376 shares of the software maker's stock valued at $609,000 after acquiring an additional 8,296 shares during the period. Invesco Ltd. increased its stake in PAR Technology by 100.9% in the fourth quarter. Invesco Ltd. now owns 1,283,978 shares of the software maker's stock valued at $93,307,000 after acquiring an additional 644,920 shares during the period. Finally, Renaissance Technologies LLC increased its stake in PAR Technology by 63.2% in the fourth quarter. Renaissance Technologies LLC now owns 180,700 shares of the software maker's stock valued at $13,131,000 after acquiring an additional 70,000 shares during the period.

PAR Technology Price Performance

The company has a debt-to-equity ratio of 0.46, a current ratio of 2.05 and a quick ratio of 1.83. The stock has a market capitalization of $1.90 billion, a P/E ratio of -20.87 and a beta of 1.70. The company's 50 day simple moving average is $65.62 and its two-hundred day simple moving average is $64.14.

About PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies.