Paysafe (NYSE:PSFE) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Paysafe from “hold” to “strong sell,” adding to a mixed analyst picture that currently includes an average “Reduce” rating and an average price target of $10.96.
• Paysafe’s shares were down 12.5% in the report, with the stock opening at $8.18 and trading below the broader analyst price targets. The company has a market cap of about $422.6 million and relatively high leverage, with a debt-to-equity ratio of 3.98.
• Despite the downgrade, Paysafe recently posted a Q1 beat, reporting $0.41 EPS versus $0.40 expected and revenue of $442.7 million versus $424.4 million expected. The company also raised its FY 2026 EPS guidance to $2.12-$2.32, indicating management expects continued momentum.

Paysafe (NYSE:PSFE - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Wednesday,Zacks.com reports.

PSFE has been the subject of a number of other reports. Wall Street Zen downgraded Paysafe from a "buy" rating to a "hold" rating in a research report on Sunday, April 19th. UBS Group restated a "sell" rating and issued a $7.50 price target (up from $6.75) on shares of Paysafe in a research report on Thursday. BTIG Research raised their price target on Paysafe from $10.00 to $12.00 and gave the stock a "buy" rating in a research report on Wednesday. Weiss Ratings restated a "sell (d-)" rating on shares of Paysafe in a research report on Thursday, January 22nd. Finally, Susquehanna restated a "neutral" rating and issued a $10.00 price target (up from $9.00) on shares of Paysafe in a research report on Thursday. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $10.96.

Paysafe Stock Down 12.5%

Shares of PSFE opened at $8.18 on Wednesday. The company has a market cap of $422.55 million, a PE ratio of -2.32, a P/E/G ratio of 0.31 and a beta of 1.82. The business has a fifty day moving average of $7.84 and a 200 day moving average of $7.86. Paysafe has a 52-week low of $5.95 and a 52-week high of $15.02. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 3.98.

Paysafe (NYSE:PSFE - Get Free Report) last issued its quarterly earnings results on Wednesday, May 13th. The company reported $0.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.40 by $0.01. The company had revenue of $442.72 million during the quarter, compared to the consensus estimate of $424.41 million. Paysafe had a positive return on equity of 10.90% and a negative net margin of 11.44%.Paysafe has set its FY 2026 guidance at 2.120-2.320 EPS. On average, sell-side analysts expect that Paysafe will post 1.6 EPS for the current year.

Insider Buying and Selling

In related news, insider Richard Swales sold 18,849 shares of the firm's stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $6.87, for a total value of $129,492.63. Following the transaction, the insider owned 24,291 shares of the company's stock, valued at $166,879.17. This trade represents a 43.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in PSFE. Private Management Group Inc. increased its stake in Paysafe by 60.3% in the 4th quarter. Private Management Group Inc. now owns 2,384,594 shares of the company's stock worth $19,291,000 after buying an additional 897,103 shares during the period. Sona Asset Management US LLC purchased a new position in Paysafe in the 3rd quarter worth about $3,090,000. Charles Schwab Investment Management Inc. increased its stake in Paysafe by 57.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 543,416 shares of the company's stock worth $4,396,000 after buying an additional 197,268 shares during the period. Ancora Advisors LLC increased its stake in shares of Paysafe by 507.3% during the third quarter. Ancora Advisors LLC now owns 196,580 shares of the company's stock valued at $2,540,000 after buying an additional 164,210 shares during the period. Finally, HRT Financial LP increased its stake in shares of Paysafe by 1,102.1% during the fourth quarter. HRT Financial LP now owns 155,381 shares of the company's stock valued at $1,257,000 after buying an additional 142,455 shares during the period. Hedge funds and other institutional investors own 54.39% of the company's stock.

Key Paysafe News

Here are the key news stories impacting Paysafe this week:

• Positive Sentiment: Paysafe reported Q1 2026 EPS of $0.41, edging past estimates, while revenue of $442.7 million also beat Wall Street expectations. The company said digital wallet users rose 9%, highlighting continued growth in its payments platform. Paysafe Reports First Quarter 2026 Results
• Positive Sentiment: Paysafe raised its full-year 2026 guidance, projecting EPS of $2.12 to $2.32, above consensus, while reaffirming revenue expectations around $1.8 billion. That stronger outlook suggests management sees continued momentum in the business. Paysafe Ltd (PSFE) Q1 2026 Earnings Call Highlights: Strong Revenue Growth Amidst Operational ...
• Positive Sentiment: BTIG Research lifted its price target on Paysafe NYSE: PSFE from $10 to $12 and kept a buy rating, signaling improved analyst confidence after the earnings release. Paysafe NYSE: PSFE Given New $12.00 Price Target at BTIG Research
• Neutral Sentiment: Multiple earnings-call transcript articles circulated after the report, reinforcing the same results and management commentary, but they do not add new material information beyond the earnings release. Paysafe Limited NYSE: PSFE Q1 2026 Earnings Call Transcript
• Negative Sentiment: Despite the beat-and-raise quarter, some coverage noted the shares were still somewhat muted after the guidance update, suggesting investors may be weighing the company’s leverage and mixed profitability profile against the stronger operating results. Paysafe tops quarterly expectations while shares stay muted after guidance update (PSFE)

Paysafe Company Profile

Paysafe is a global payments provider that delivers a comprehensive suite of online and offline payment solutions. The company operates a diverse portfolio of products, including digital wallets under the Skrill and Neteller brands, prepaid voucher services through paysafecard, and integrated payment processing solutions for merchants. Paysafe's platform is designed to serve a wide range of industries, from e-commerce and digital goods to gaming, financial services, and regulated verticals, offering tailored risk and compliance management alongside its core transaction capabilities.

Founded through a series of mergers and strategic acquisitions, Paysafe traces its origins to the launch of paysafecard in 2000 and the establishment of Optimal Payments in 1996.

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