Paysafe (NYSE:PSFE) Trading 10.8% Higher After Earnings Beat

Key Points

• Paysafe Limited shares rose by 10.8% following the announcement of quarterly earnings that exceeded analyst expectations.
• The company reported an EPS of $0.46, surpassing the consensus estimate of $0.45, although revenue declined by 2.7% year-over-year.
• Institutional investors increased their stakes in Paysafe significantly, with Spire Wealth Management boosting its position by 87.8% in the first quarter.

Paysafe Limited (NYSE:PSFE - Get Free Report) rose 10.8% on Tuesday following a better than expected earnings announcement. The stock traded as high as $13.38 and last traded at $13.04. Approximately 87,537 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 391,667 shares. The stock had previously closed at $11.77.

The company reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.01. The firm had revenue of $428.22 million during the quarter, compared to analyst estimates of $424.11 million. Paysafe had a positive return on equity of 9.64% and a negative net margin of 2.93%. Paysafe's revenue was down 2.7% compared to the same quarter last year. During the same period last year, the business posted $0.59 earnings per share.

Analyst Upgrades and Downgrades

PSFE has been the subject of a number of recent analyst reports. Susquehanna decreased their price target on Paysafe from $17.00 to $15.00 and set a "neutral" rating for the company in a report on Tuesday, April 22nd. BTIG Research reaffirmed a "buy" rating on shares of Paysafe in a report on Tuesday. Finally, Bank of America raised Paysafe from an "underperform" rating to a "neutral" rating and set a $14.30 price target for the company in a report on Friday, May 16th. One analyst has rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $16.95.

Institutional Trading of Paysafe

A number of hedge funds and other institutional investors have recently made changes to their positions in PSFE. Franklin Resources Inc. acquired a new stake in shares of Paysafe during the fourth quarter worth about $374,000. Invesco Ltd. increased its position in shares of Paysafe by 2.2% during the fourth quarter. Invesco Ltd. now owns 95,381 shares of the company's stock worth $1,631,000 after purchasing an additional 2,050 shares in the last quarter. Renaissance Technologies LLC increased its position in shares of Paysafe by 10.4% during the fourth quarter. Renaissance Technologies LLC now owns 280,889 shares of the company's stock worth $4,803,000 after purchasing an additional 26,400 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Paysafe during the fourth quarter worth about $1,944,000. Finally, Barclays PLC increased its position in shares of Paysafe by 14.9% during the fourth quarter. Barclays PLC now owns 48,451 shares of the company's stock worth $829,000 after purchasing an additional 6,284 shares in the last quarter. Institutional investors and hedge funds own 54.39% of the company's stock.

Paysafe Price Performance

The firm has a market cap of $821.09 million, a price-to-earnings ratio of -16.13, a PEG ratio of 0.38 and a beta of 1.78. The stock has a 50-day moving average price of $12.87 and a 200 day moving average price of $14.93. The company has a debt-to-equity ratio of 3.15, a current ratio of 1.20 and a quick ratio of 1.16.

Paysafe Company Profile

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets.