Repay (NASDAQ:RPAY) Posts Quarterly Earnings Results

Key Points

• Repay (NASDAQ:RPAY) reported quarterly earnings of $0.17 per share, falling short of the consensus estimate of $0.20, with a return on equity of 8.49%.
• The company's board approved a stock repurchase plan allowing for the reacquisition of up to $75 million in shares, indicating management's belief that the stock may be undervalued.
• Insider transactions showed significant buying activity, with CEO John Morris purchasing 86,761 shares and other executives also increasing their stakes in the company.

Repay (NASDAQ:RPAY - Get Free Report) issued its earnings results on Monday. The company reported $0.20 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.20, Briefing.com reports. Repay had a positive return on equity of 8.89% and a negative net margin of 35.79%. The business had revenue of $75.63 million during the quarter, compared to analysts' expectations of $74.24 million. During the same quarter in the prior year, the firm earned $0.22 EPS. The business's revenue for the quarter was up .9% compared to the same quarter last year.

Repay Stock Down 1.5%

Shares of RPAY stock traded down $0.09 during trading hours on Friday, reaching $5.43. The company had a trading volume of 79,492 shares, compared to its average volume of 1,231,655. Repay has a 12 month low of $3.59 and a 12 month high of $9.75. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.85 and a quick ratio of 3.71. The business has a fifty day simple moving average of $4.99 and a 200-day simple moving average of $5.34. The company has a market cap of $539.46 million, a price-to-earnings ratio of -4.31 and a beta of 1.64.

Analyst Upgrades and Downgrades

RPAY has been the subject of a number of recent research reports. Citigroup lowered their target price on Repay from $8.00 to $4.50 and set a "neutral" rating for the company in a report on Monday, May 19th. Keefe, Bruyette & Woods upped their target price on Repay from $5.00 to $5.75 and gave the company a "market perform" rating in a research report on Tuesday. DA Davidson cut their target price on Repay from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Wednesday. Wall Street Zen lowered Repay from a "buy" rating to a "hold" rating in a research report on Thursday, May 22nd. Finally, Morgan Stanley increased their price target on Repay from $4.50 to $5.00 and gave the stock an "equal weight" rating in a report on Tuesday. Six equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, Repay has an average rating of "Hold" and a consensus target price of $7.22.

Repay declared that its board has authorized a share buyback plan on Monday, May 12th that authorizes the company to repurchase $75.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 19% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC increased its position in shares of Repay by 224.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,433 shares of the company's stock valued at $50,000 after purchasing an additional 7,217 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Repay during the 2nd quarter valued at $134,000. Brevan Howard Capital Management LP purchased a new stake in shares of Repay during the 2nd quarter valued at $137,000. Prudential Financial Inc. purchased a new stake in shares of Repay during the 2nd quarter valued at $258,000. Finally, Creative Planning increased its position in shares of Repay by 13.0% during the 2nd quarter. Creative Planning now owns 64,340 shares of the company's stock valued at $310,000 after purchasing an additional 7,381 shares during the last quarter. Institutional investors own 82.73% of the company's stock.

Repay Company Profile

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods.