Repay (NASDAQ:RPAY) Issues 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) released its earnings results on Monday. The company reported $0.20 EPS for the quarter, meeting analysts' consensus estimates of $0.20, Briefing.com reports. The firm had revenue of $75.63 million for the quarter, compared to analysts' expectations of $74.24 million. Repay had a positive return on equity of 8.52% and a negative net margin of 35.79%. The company's quarterly revenue was up .9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.22 earnings per share.

Repay Stock Up 5.4%

Shares of RPAY traded up $0.29 during midday trading on Wednesday, hitting $5.64. 1,871,896 shares of the company's stock traded hands, compared to its average volume of 1,235,959. The company has a current ratio of 3.71, a quick ratio of 3.71 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $560.84 million, a price-to-earnings ratio of -4.48 and a beta of 1.64. Repay has a 1 year low of $3.59 and a 1 year high of $9.75. The firm's fifty day moving average is $4.97 and its 200-day moving average is $5.36.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on RPAY shares. DA Davidson dropped their price objective on Repay from $12.00 to $10.00 and set a "buy" rating on the stock in a research note on Wednesday. Morgan Stanley increased their price objective on Repay from $4.50 to $5.00 and gave the stock an "equal weight" rating in a research note on Tuesday. Citigroup dropped their price objective on Repay from $8.00 to $4.50 and set a "neutral" rating on the stock in a research note on Monday, May 19th. UBS Group reissued a "neutral" rating and issued a $5.75 price objective (up previously from $4.50) on shares of Repay in a research note on Wednesday. Finally, Keefe, Bruyette & Woods increased their price objective on Repay from $5.00 to $5.75 and gave the stock a "market perform" rating in a research note on Tuesday. Six equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat, Repay presently has a consensus rating of "Hold" and a consensus target price of $7.80.

Insiders Place Their Bets

In other Repay news, President Shaler Alias acquired 15,378 shares of the stock in a transaction dated Thursday, May 15th. The stock was purchased at an average price of $3.93 per share, with a total value of $60,435.54. Following the transaction, the president directly owned 264,782 shares of the company's stock, valued at $1,040,593.26. This trade represents a 6.17% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO John Andrew Sr. Morris acquired 86,761 shares of the stock in a transaction dated Thursday, May 15th. The stock was acquired at an average cost of $3.89 per share, with a total value of $337,500.29. Following the transaction, the chief executive officer directly owned 86,761 shares in the company, valued at approximately $337,500.29. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders bought a total of 102,257 shares of company stock valued at $398,426 in the last three months. Insiders own 12.00% of the company's stock.

Institutional Trading of Repay

A number of institutional investors have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Repay in the 2nd quarter worth $2,266,000. Quantbot Technologies LP boosted its position in shares of Repay by 141.6% in the 2nd quarter. Quantbot Technologies LP now owns 69,475 shares of the company's stock worth $335,000 after purchasing an additional 40,720 shares in the last quarter. Hsbc Holdings PLC raised its stake in Repay by 97.5% in the 2nd quarter. Hsbc Holdings PLC now owns 71,685 shares of the company's stock worth $346,000 after acquiring an additional 35,392 shares during the last quarter. Prudential Financial Inc. acquired a new stake in Repay during the 2nd quarter worth about $258,000. Finally, Rhumbline Advisers lifted its position in Repay by 31.5% during the 2nd quarter. Rhumbline Advisers now owns 174,531 shares of the company's stock worth $841,000 after acquiring an additional 41,816 shares during the period. Institutional investors and hedge funds own 82.73% of the company's stock.

Repay announced that its Board of Directors has initiated a stock repurchase plan on Monday, May 12th that authorizes the company to buyback $75.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 19% of its shares through open market purchases. Shares buyback plans are often a sign that the company's management believes its shares are undervalued.

About Repay

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.