Repay (NASDAQ:RPAY) Shares Gap Up on Analyst Upgrade

Key Points

• Morgan Stanley raised Repay Holdings Corporation's price target from $4.50 to $5.00, resulting in a gap up of the stock price before trading.
• Insiders of Repay have been actively purchasing shares, with President Shaler Alias acquiring 15,378 shares and CEO John Andrew Sr. Morris buying 86,761 shares recently.
• Repay announced a share repurchase plan, authorizing the buyback of up to $75 million in shares, signaling confidence in the company's undervalued stock.

Shares of Repay Holdings Corporation (NASDAQ:RPAY - Get Free Report) gapped up prior to trading on Tuesday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $5.36, but opened at $5.61. Repay shares last traded at $5.22, with a volume of 95,873 shares.

Other equities research analysts also recently issued reports about the company. UBS Group reiterated a "neutral" rating and issued a $5.75 target price (up from $4.50) on shares of Repay in a report on Wednesday. Morgan Stanley lifted their target price on Repay from $4.50 to $5.00 and gave the stock an "equal weight" rating in a report on Tuesday. BMO Capital Markets lowered their target price on Repay from $7.00 to $5.00 and set a "market perform" rating for the company in a report on Tuesday, May 13th. DA Davidson reduced their price objective on Repay from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Wednesday. Finally, Citigroup reduced their price objective on Repay from $8.00 to $4.50 and set a "neutral" rating for the company in a research note on Monday, May 19th. Five research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $7.22.

Institutional Investors Weigh In On Repay

Several institutional investors have recently bought and sold shares of the stock. American Century Companies Inc. grew its holdings in Repay by 45.5% during the second quarter. American Century Companies Inc. now owns 6,440,443 shares of the company's stock worth $31,043,000 after buying an additional 2,013,128 shares in the last quarter. Sunriver Management LLC grew its holdings in Repay by 2.1% during the first quarter. Sunriver Management LLC now owns 6,168,501 shares of the company's stock worth $34,359,000 after buying an additional 125,133 shares in the last quarter. Wellington Management Group LLP grew its holdings in Repay by 4.4% during the first quarter. Wellington Management Group LLP now owns 4,917,703 shares of the company's stock worth $27,392,000 after buying an additional 207,212 shares in the last quarter. Vanguard Group Inc. grew its holdings in Repay by 1.8% during the first quarter. Vanguard Group Inc. now owns 4,770,074 shares of the company's stock worth $26,569,000 after buying an additional 82,196 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in Repay by 6.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,339,948 shares of the company's stock worth $33,114,000 after buying an additional 243,743 shares in the last quarter. Institutional investors own 82.73% of the company's stock.

Repay Price Performance

The company has a fifty day moving average of $5.00 and a 200-day moving average of $5.33. The firm has a market cap of $539.96 million, a P/E ratio of -4.31 and a beta of 1.64. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.85 and a quick ratio of 3.71.

Repay (NASDAQ:RPAY - Get Free Report) last announced its quarterly earnings results on Monday, August 11th. The company reported $0.20 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.20. 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 the consensus estimate of $74.24 million. During the same quarter in the prior year, the company posted $0.22 earnings per share. Repay's revenue was up .9% compared to the same quarter last year. On average, sell-side analysts anticipate that Repay Holdings Corporation will post 0.72 EPS for the current fiscal year.

Repay declared that its board has authorized a stock buyback program on Monday, May 12th that allows the company to repurchase $75.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 19% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's management believes its shares are undervalued.

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.