Nayax (NASDAQ:NYAX) Shares Gap Up - Still a Buy?

Key Points

• Nayax shares jumped from a $44.57 close to a $46.62 open and recently traded near $47.61. The move follows a strategic partnership with Santander’s Getnet to expand payment services across Latin America and Iberia.
• Analysts see potential upside, with an average price target of $75.76, but the consensus rating remains “Hold” amid recent target cuts and mixed recommendations. Nayax’s latest quarter exceeded expectations, with $0.14 EPS versus $0.09 expected and revenue of $122.59 million.
• Valuation and technical indicators remain concerns: the stock trades at a high trailing P/E of 225.83 and below its 50-day and 200-day moving averages. However, insider activity was net positive recently, led by a CEO purchase of roughly $4.6 million in shares.

Shares of Nayax Ltd. (NASDAQ:NYAX - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $44.57, but opened at $46.62. Nayax shares last traded at $47.6090, with a volume of 4,814 shares changing hands.

More Nayax News

Here are the key news stories impacting Nayax this week:

• Positive Sentiment: Expansion with Santander’s Getnet: Nayax will integrate its payment technology with Getnet’s acquiring network, initially in Chile and later in Spain, Portugal, Brazil, Mexico and Argentina. The partnership targets vending machines, electric-vehicle chargers, kiosks and other unattended-payment businesses, potentially expanding Nayax’s international reach and transaction volume. Getnet and Nayax strategic partnership
• Positive Sentiment: Upside in analyst targets: Brokerages show an average price target of $75.76, with four Buy ratings, three Holds and one Sell. This suggests analysts see substantial potential upside, although recent target reductions and a Hold consensus temper the bullish signal. Nayax average analyst target
• Neutral Sentiment: Peer comparison provides limited new information: An article comparing Nayax with Flywire discusses financial differences but does not identify a new earnings, operational or valuation catalyst likely to materially change the investment case. Flywire and Nayax financial comparison
• Negative Sentiment: Multiple insider sales: The CEO, CFO, CMO and other insiders sold shares totaling approximately $41,700. The filings say most transactions covered tax withholding obligations from vested equity awards, and the executives retained sizable holdings, reducing the bearish significance. Still, the concentration of sales may add to investor caution, particularly as NYAX trades below its moving averages and carries a high trailing price-to-earnings ratio.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Weiss Ratings cut shares of Nayax from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, September 22nd. Barclays decreased their price objective on Nayax from $75.00 to $68.00 and set an "equal weight" rating for the company in a research note on Tuesday, August 11th. UBS Group reiterated a "neutral" rating and issued a $70.00 price objective on shares of Nayax in a report on Tuesday, August 11th. Keefe, Bruyette & Woods raised Nayax from a "market perform" rating to an "outperform" rating and set a $75.00 target price on the stock in a research note on Friday, August 14th. Finally, Zacks Research upgraded Nayax from a "strong sell" rating to a "hold" rating in a report on Wednesday, July 1st. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Nayax currently has a consensus rating of "Hold" and an average target price of $75.76.

Nayax Stock Performance

The company has a debt-to-equity ratio of 1.43, a current ratio of 2.12 and a quick ratio of 2.03. The company has a market cap of $1.74 billion, a price-to-earnings ratio of 225.83 and a beta of 0.43. The stock has a 50-day moving average price of $53.84 and a 200 day moving average price of $60.96.

Nayax (NASDAQ:NYAX - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.05. The business had revenue of $122.59 million during the quarter, compared to analyst estimates of $116.75 million. Nayax had a return on equity of 10.45% and a net margin of 1.74%. As a group, analysts anticipate that Nayax Ltd. will post 0.75 EPS for the current fiscal year.

Insider Activity

In related news, CEO Yair Nechmad acquired 104,511 shares of the stock in a transaction dated Thursday, September 24th. The stock was bought at an average price of $44.09 per share, with a total value of $4,607,889.99. Following the completion of the transaction, the chief executive officer directly owned 7,433,558 shares of the company's stock, valued at approximately $327,745,572.22. The trade was a 1.43% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider David Ben-Avi acquired 1,554 shares of the company's stock in a transaction that occurred on Tuesday, September 22nd. The shares were bought at an average price of $43.18 per share, for a total transaction of $67,101.72. Following the completion of the acquisition, the insider owned 6,591,702 shares of the company's stock, valued at $284,629,692.36. This trade represents a 0.02% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 107,879 shares of company stock worth $4,752,860 and sold 3,161 shares worth $152,241.

Institutional Trading of Nayax

Hedge funds and other institutional investors have recently modified their holdings of the company. Tidal Investments LLC acquired a new position in shares of Nayax during the second quarter worth about $650,000. Public Employees Retirement System of Ohio bought a new position in shares of Nayax during the second quarter worth about $239,000. Bank of America Corp DE raised its position in Nayax by 1,607.2% in the 1st quarter. Bank of America Corp DE now owns 9,270 shares of the company's stock valued at $519,000 after buying an additional 8,727 shares during the last quarter. Altshuler Shaham Ltd raised its position in Nayax by 5.0% in the 1st quarter. Altshuler Shaham Ltd now owns 36,220 shares of the company's stock valued at $2,026,000 after buying an additional 1,731 shares during the last quarter. Finally, Y.D. More Investments Ltd lifted its stake in Nayax by 3.1% in the 1st quarter. Y.D. More Investments Ltd now owns 865,171 shares of the company's stock valued at $48,387,000 after acquiring an additional 25,694 shares in the last quarter. Institutional investors and hedge funds own 34.87% of the company's stock.

Nayax Company Profile

Nayax Ltd. NASDAQ: NYAX is a global financial technology and commerce enablement company that provides payment processing, management software and business intelligence solutions for unattended and self-service markets. Its platform helps businesses accept and manage cashless transactions while monitoring equipment, customer activity and operational performance.

The company's products and services are used across industries including vending, electric vehicle charging, fuel and convenience retail, parking, laundromats, hospitality and other automated retail environments.

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