Paymentus (NYSE:PAY) Shares Up 6.8% - What's Next?

Key Points

• Paymentus shares rose 6.8% to about $33.61 in Tuesday trading, although volume was 66% below the stock’s average daily volume.
• Analyst sentiment remains positive, with Baird and Wedbush raising their price targets to $34 and $36, respectively; the consensus rating is Moderate Buy with a $35.20 target.
• Paymentus exceeded quarterly expectations, reporting $0.21 in EPS versus $0.17 expected and $358.44 million in revenue, up 30.2% year over year. Institutional investors own 78.38% of the company’s shares.

Shares of Paymentus Holdings, Inc. (NYSE:PAY - Get Free Report) rose 6.8% during trading on Tuesday . The stock traded as high as $33.51 and last traded at $33.6060. 275,655 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 800,332 shares. The stock had previously closed at $31.48.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on PAY. Robert W. Baird increased their price target on Paymentus from $30.00 to $34.00 and gave the company an "outperform" rating in a research report on Tuesday, May 5th. Wedbush increased their price objective on Paymentus from $32.00 to $36.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 5th. Finally, Weiss Ratings lowered Paymentus from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Paymentus has a consensus rating of "Moderate Buy" and a consensus price target of $35.20.

Paymentus Trading Up 7.4%

The stock's fifty day moving average price is $24.63 and its 200 day moving average price is $25.68. The stock has a market cap of $4.25 billion, a P/E ratio of 59.33 and a beta of 1.31.

Paymentus (NYSE:PAY - Get Free Report) last announced its quarterly earnings results on Monday, May 4th. The business services provider reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.17 by $0.04. The company had revenue of $358.44 million for the quarter, compared to the consensus estimate of $335.45 million. Paymentus had a return on equity of 13.75% and a net margin of 5.78%.Paymentus's revenue was up 30.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.14 EPS. On average, analysts anticipate that Paymentus Holdings, Inc. will post 0.71 earnings per share for the current year.

Hedge Funds Weigh In On Paymentus

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wasatch Advisors LP increased its position in shares of Paymentus by 82.2% during the fourth quarter. Wasatch Advisors LP now owns 8,553,165 shares of the business services provider's stock worth $270,194,000 after purchasing an additional 3,859,056 shares in the last quarter. Capital International Investors raised its position in shares of Paymentus by 6.6% in the fourth quarter. Capital International Investors now owns 7,655,433 shares of the business services provider's stock valued at $241,835,000 after buying an additional 474,780 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Paymentus by 20.7% in the fourth quarter. Vanguard Group Inc. now owns 4,391,890 shares of the business services provider's stock worth $138,740,000 after buying an additional 753,281 shares in the last quarter. Invesco Ltd. boosted its position in Paymentus by 115.8% during the third quarter. Invesco Ltd. now owns 3,788,090 shares of the business services provider's stock worth $115,916,000 after acquiring an additional 2,032,819 shares during the last quarter. Finally, Capital World Investors grew its stake in Paymentus by 4.4% during the 4th quarter. Capital World Investors now owns 2,499,583 shares of the business services provider's stock valued at $78,962,000 after acquiring an additional 105,970 shares in the last quarter. 78.38% of the stock is owned by hedge funds and other institutional investors.

Paymentus Company Profile

Paymentus is a U.S.-based financial technology company that specializes in cloud-native bill payment and presentment solutions. Its platform enables businesses and government entities to manage the entire payment lifecycle, from electronic bill presentment and real-time payment processing to reconciliation and reporting. Through web portals, mobile applications, interactive voice response (IVR) systems and in-person channels, Paymentus helps clients streamline accounts receivable operations, enhance customer engagement and reduce operational costs.

Founded in 2004 and headquartered in Wilmington, Delaware, Paymentus has built a modular suite of services that can be tailored to the needs of various industries.

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