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 still leans negative overall. The consensus rating is now “Reduce,” with an average target price of $10.12.
• Other analysts remain divided on PSFE, with recent ratings ranging from “buy” to “sell.” Notable targets include RBC at $11.00, Susquehanna at $10.00, UBS at $7.50, and BTIG at $12.00.
• Paysafe’s recent results were mixed but slightly better than expected, as it reported $0.41 EPS versus $0.40 expected and revenue of $442.72 million versus $424.41 million expected. Shares opened at $8.44, with the stock trading well below its 52-week high of $15.02.

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

A number of other brokerages also recently issued reports on PSFE. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $11.00 price target (up from $9.00) on shares of Paysafe in a report on Thursday, May 14th. Susquehanna reiterated a "neutral" rating and issued a $10.00 price objective (up from $9.00) on shares of Paysafe in a report on Thursday, May 14th. UBS Group reissued a "sell" rating and issued a $7.50 target price (up from $6.75) on shares of Paysafe in a research report on Thursday, May 14th. BTIG Research upped their target price on shares of Paysafe from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. Finally, Wall Street Zen raised shares of Paysafe from a "hold" rating to a "buy" rating in a report on Saturday, June 13th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $10.12.

Paysafe Price Performance

Shares of PSFE opened at $8.44 on Wednesday. Paysafe has a twelve month low of $5.95 and a twelve month high of $15.02. The company has a market capitalization of $436.39 million, a P/E ratio of -2.39, a price-to-earnings-growth ratio of 0.52 and a beta of 1.74. The firm has a 50 day moving average of $7.59 and a 200 day moving average of $7.49. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 4.03.

Paysafe (NYSE:PSFE - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.01. Paysafe had a positive return on equity of 11.32% and a negative net margin of 11.44%.The business had revenue of $442.72 million for the quarter, compared to analysts' expectations of $424.41 million. As a group, equities research analysts anticipate that Paysafe will post 1.1 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Richard Swales sold 10,000 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $7.69, for a total value of $76,900.00. Following the transaction, the insider directly owned 44,456 shares in the company, valued at $341,866.64. This trade represents a 18.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of PSFE. Dimensional Fund Advisors LP grew its stake in shares of Paysafe by 3.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 2,439,793 shares of the company's stock valued at $31,522,000 after purchasing an additional 82,440 shares during the period. Private Management Group Inc. lifted its stake in shares of 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 purchasing an additional 897,103 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in shares of Paysafe by 57.0% in the fourth 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 last quarter. Jacobs Levy Equity Management Inc. grew its position in Paysafe by 2.0% during the third quarter. Jacobs Levy Equity Management Inc. now owns 516,289 shares of the company's stock valued at $6,670,000 after buying an additional 9,947 shares during the period. Finally, Geode Capital Management LLC grew its position in Paysafe by 1.8% during the second quarter. Geode Capital Management LLC now owns 399,449 shares of the company's stock valued at $5,041,000 after buying an additional 7,155 shares during the period. Institutional investors own 54.39% of the company's stock.

About Paysafe

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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