Paysafe (NYSE:PSFE) Stock Price Down 6.7% - Should You Sell?

Key Points

• Paysafe Limited's shares dropped by 6.7% to a low of $13.52, significantly below the previous close of $14.49, amid reduced trading volume.
• Equities analysts have mixed ratings for Paysafe, with a consensus rating of "Hold" and an average price target of $16.95, following recent upgrades and downgrades.
• The company's latest earnings report showed a 2.7% year-over-year revenue decline, yet it exceeded analysts’ expectations with earnings per share of $0.46.

Paysafe Limited (NYSE:PSFE - Get Free Report) fell 6.7% during mid-day trading on Thursday . The stock traded as low as $13.58 and last traded at $13.52. 154,888 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 400,401 shares. The stock had previously closed at $14.49.

Analyst Ratings Changes

Several brokerages have issued reports on PSFE. BTIG Research reaffirmed a "buy" rating on shares of Paysafe in a report on Tuesday, August 12th. Susquehanna lowered their price target on Paysafe from $17.00 to $15.00 and set a "neutral" rating on the stock in a report on Tuesday, April 22nd. Finally, Bank of America raised Paysafe from an "underperform" rating to a "neutral" rating and set a $14.30 price target on the stock in a report on Friday, May 16th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Paysafe currently has an average rating of "Hold" and a consensus target price of $16.95.

Paysafe Stock Performance

The stock's 50-day moving average price is $12.90 and its 200-day moving average price is $14.81. The company has a debt-to-equity ratio of 3.15, a quick ratio of 1.20 and a current ratio of 1.20. The company has a market capitalization of $819.24 million, a price-to-earnings ratio of -16.09, a P/E/G ratio of 0.38 and a beta of 1.78.

Paysafe (NYSE:PSFE - Get Free Report) last issued its quarterly earnings data on Tuesday, August 12th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.01. Paysafe had a positive return on equity of 9.64% and a negative net margin of 2.93%.The firm had revenue of $428.22 million during the quarter, compared to the consensus estimate of $424.11 million. During the same period in the previous year, the firm posted $0.59 EPS. The company's quarterly revenue was down 2.7% compared to the same quarter last year. Paysafe has set its FY 2025 guidance at 2.210-2.510 EPS. As a group, equities research analysts expect that Paysafe Limited will post 1.87 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Mirae Asset Global Investments Co. Ltd. increased its stake in shares of Paysafe by 1,385.5% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,075 shares of the company's stock valued at $48,000 after purchasing an additional 2,868 shares during the period. Spire Wealth Management increased its stake in shares of Paysafe by 87.8% in the first quarter. Spire Wealth Management now owns 2,845 shares of the company's stock valued at $45,000 after purchasing an additional 1,330 shares during the period. Invesco Ltd. increased its stake in shares of Paysafe by 2.2% in the fourth quarter. Invesco Ltd. now owns 95,381 shares of the company's stock valued at $1,631,000 after purchasing an additional 2,050 shares during the period. Principal Financial Group Inc. boosted its holdings in shares of Paysafe by 2.8% in the first quarter. Principal Financial Group Inc. now owns 38,769 shares of the company's stock valued at $608,000 after acquiring an additional 1,042 shares in the last quarter. Finally, Barclays PLC boosted its holdings in shares of Paysafe by 14.9% in the fourth quarter. Barclays PLC now owns 48,451 shares of the company's stock valued at $829,000 after acquiring an additional 6,284 shares in the last quarter. 54.39% of the stock is currently owned by institutional investors and hedge funds.

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.