Priority Technology (NASDAQ:PRTH) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Priority Technology from “buy” to “hold,” joining several analysts who recently reduced their ratings. The stock now has an average “hold” rating and a consensus price target of $8.50.
• Priority Technology exceeded second-quarter expectations, reporting $0.29 in EPS and $262.26 million in revenue versus estimates of $0.26 and $257.81 million, respectively.
• Despite strong revenue growth, analysts and management flagged margin pressure and rising costs; Keefe, Bruyette & Woods cut its price target to $6.50, while Alliance Global Partners set a $7.00 target and a “neutral” rating.

Priority Technology (NASDAQ:PRTH - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

A number of other analysts also recently issued reports on the company. Weiss Ratings reissued a "hold (c)" rating on shares of Priority Technology in a research report on Wednesday, June 24th. Zacks Research lowered shares of Priority Technology from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Alliance Global Partners cut Priority Technology from a "buy" rating to a "neutral" rating and set a $7.00 price target on the stock. in a report on Thursday. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Priority Technology from $7.50 to $6.50 and set a "market perform" rating on the stock in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $8.50.

Priority Technology Stock Performance

NASDAQ:PRTH opened at $5.39 on Friday. The firm has a market cap of $443.92 million, a price-to-earnings ratio of 7.81 and a beta of 1.57. The firm has a 50-day moving average price of $6.62 and a two-hundred day moving average price of $5.84. Priority Technology has a 52 week low of $4.44 and a 52 week high of $8.59.

Priority Technology (NASDAQ:PRTH - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.03. Priority Technology had a negative return on equity of 98.46% and a net margin of 5.61%.The company had revenue of $262.26 million during the quarter, compared to the consensus estimate of $257.81 million. As a group, sell-side analysts forecast that Priority Technology will post 1.24 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in PRTH. BlackRock Inc. purchased a new position in shares of Priority Technology during the second quarter valued at about $15,788,000. FourWorld Capital Management LLC increased its position in Priority Technology by 330.0% during the 1st quarter. FourWorld Capital Management LLC now owns 1,583,904 shares of the company's stock valued at $7,476,000 after buying an additional 1,215,583 shares in the last quarter. Wells Fargo & Company MN increased its holdings in shares of Priority Technology by 1,912.7% during the fourth quarter. Wells Fargo & Company MN now owns 711,136 shares of the company's stock valued at $3,876,000 after acquiring an additional 675,803 shares in the last quarter. Norwood Investment Partners LP bought a new stake in Priority Technology during the 4th quarter valued at about $3,433,000. Finally, Beartown Capital Management LLC bought a new stake in shares of Priority Technology during the fourth quarter valued at approximately $2,180,000. 11.52% of the stock is owned by hedge funds and other institutional investors.

More Priority Technology News

Here are the key news stories impacting Priority Technology this week:

• Positive Sentiment: Priority Technology reported second-quarter earnings of $0.29 per share, above analyst estimates of $0.26-$0.28, while revenue rose 9% year over year to approximately $262.3 million, exceeding expectations. Priority Technology Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The Payables segment led growth, supported by higher buyer-funded revenue. Management indicated full-year revenue is tracking near the high end of its guidance range, suggesting continued demand for the company’s connected-commerce platform. Buyer-Funded Revenue Powers Priority Technology Holdings' Payables Surge
• Neutral Sentiment: Keefe, Bruyette & Woods lowered its price target from $7.50 to $6.50 and assigned a “market perform” rating. Although the target implies upside from recent trading levels, the reduced target signals more limited expectations.
• Negative Sentiment: Management’s earnings-call commentary highlighted margin pressure from business-mix shifts and rising costs. Consequently, full-year profit expectations are trending toward the low end of guidance despite revenue holding near the high end. PRTH Q2 Earnings Call Flags Margin Pressure as Growth Holds
• Negative Sentiment: Alliance Global Partners downgraded PRTH from “buy” to “neutral” and set a $7.00 target. The downgrade, together with KBW’s target reduction, likely weighs on sentiment by emphasizing profitability and execution risks.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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