Paysafe (NYSE:PSFE) Stock Price Up 10.8% on Better-Than-Expected Earnings

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) shares were up 10.8% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $13.38 and last traded at $13.04. Approximately 87,537 shares changed 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 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.01. Paysafe had a positive return on equity of 10.41% and a negative net margin of 0.02%. The company's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.59 earnings per share.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Susquehanna cut their price target on shares of Paysafe from $17.00 to $15.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 22nd. Bank of America raised shares of Paysafe from an "underperform" rating to a "neutral" rating and set a $14.30 price target on the stock in a research note on Friday, May 16th.

Institutional Investors Weigh In On Paysafe

Large investors have recently added to or reduced their stakes in the stock. Spire Wealth Management lifted its stake in shares of Paysafe by 87.8% in the 1st quarter. Spire Wealth Management now owns 2,845 shares of the company's stock valued at $45,000 after acquiring an additional 1,330 shares during the last quarter. GAMMA Investing LLC grew its holdings in Paysafe by 10,940.7% during the 1st quarter. GAMMA Investing LLC now owns 2,981 shares of the company's stock worth $47,000 after acquiring an additional 2,954 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its position in shares of Paysafe by 1,385.5% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,075 shares of the company's stock worth $48,000 after buying an additional 2,868 shares during the period. CWM LLC grew its position in shares of Paysafe by 609.7% during the 2nd quarter. CWM LLC now owns 7,282 shares of the company's stock worth $92,000 after buying an additional 6,256 shares during the period. Finally, State of Wyoming grew its position in shares of Paysafe by 38.2% during the 4th quarter. State of Wyoming now owns 7,162 shares of the company's stock worth $122,000 after buying an additional 1,980 shares during the period. Institutional investors and hedge funds own 54.39% of the company's stock.

Paysafe Trading Up 12.4%

The company has a market cap of $792.64 million, a price-to-earnings ratio of -668.25, a P/E/G ratio of 0.32 and a beta of 1.78. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 2.75. The firm's 50-day moving average price is $12.75 and its 200 day moving average price is $15.01.

About Paysafe

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.

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