Priority Technology (NASDAQ:PRTH) Trading 6.9% Higher - Should You Buy?

Key Points

• Priority Technology shares rose 6.9% to about $6.16 in Friday trading, although volume was 43% below the average session level.
• Analyst sentiment has weakened, with several firms downgrading the stock to “neutral” or “hold.” The consensus rating is “Hold,” with an average price target of $8.50.
• The company exceeded quarterly expectations, reporting $0.29 in EPS versus $0.26 expected and $262.26 million in revenue versus $257.81 million forecast. Institutional ownership stands at 11.52%, with several major investors increasing or initiating positions.

Priority Technology Holdings, Inc. (NASDAQ:PRTH - Get Free Report)'s stock price was up 6.9% during trading on Friday . The stock traded as high as $6.08 and last traded at $6.1550. Approximately 204,800 shares were traded during mid-day trading, a decline of 43% from the average session volume of 359,860 shares. The stock had previously closed at $5.76.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Keefe, Bruyette & Woods cut their price target on shares of Priority Technology from $7.50 to $6.50 and set a "market perform" rating on the stock in a research note on Friday, August 7th. Alliance Global Partners cut Priority Technology from a "buy" rating to a "neutral" rating and set a $7.00 price target for the company. in a research note on Thursday, August 6th. Wall Street Zen cut shares of Priority Technology from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Weiss Ratings reiterated a "hold (c)" rating on shares of Priority Technology in a research report on Wednesday, June 24th. Finally, Zacks Research downgraded Priority Technology from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $8.50.

Priority Technology Stock Up 5.1%

The firm has a market cap of $499.17 million, a price-to-earnings ratio of 8.78 and a beta of 1.55. The business has a 50 day moving average of $6.08 and a 200 day moving average of $5.81.

Priority Technology (NASDAQ:PRTH - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating analysts' consensus estimates of $0.26 by $0.03. The business had revenue of $262.26 million during the quarter, compared to analyst estimates of $257.81 million. Priority Technology had a net margin of 5.61% and a negative return on equity of 104.91%. Research analysts predict that Priority Technology Holdings, Inc. will post 1.23 earnings per share for the current year.

Institutional Investors Weigh In On Priority Technology

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Priority Technology in the 2nd quarter valued at about $15,788,000. FourWorld Capital Management LLC boosted its holdings in Priority Technology by 330.0% in the first quarter. FourWorld Capital Management LLC now owns 1,583,904 shares of the company's stock valued at $7,476,000 after purchasing an additional 1,215,583 shares during the last quarter. Steamboat Capital Partners LLC grew its position in shares of Priority Technology by 13.5% during the fourth quarter. Steamboat Capital Partners LLC now owns 1,576,734 shares of the company's stock worth $8,593,000 after buying an additional 187,893 shares in the last quarter. Vanguard Group Inc. grew its holdings in Priority Technology by 13.9% during the 3rd quarter. Vanguard Group Inc. now owns 1,487,948 shares of the company's stock worth $10,222,000 after acquiring an additional 181,795 shares in the last quarter. Finally, Wells Fargo & Company MN grew its stake in Priority Technology by 1,912.7% in the fourth quarter. Wells Fargo & Company MN now owns 711,136 shares of the company's stock worth $3,876,000 after purchasing an additional 675,803 shares in the last quarter. 11.52% of the stock is currently owned by hedge funds and other institutional investors.

Priority Technology Company Profile

Priority Technology Acquisition Corp is a special purpose acquisition company formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization or similar business combination with one or more businesses in the technology sector. As a blank-check company, it does not conduct any operations of its own and holds the proceeds from its initial public offering in a trust account pending the identification and completion of a business combination.

The company’s management team is focused on evaluating target businesses that offer scalable technology products or services, including software, digital platforms and related infrastructure.

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