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.

Repay Holdings Corporation (NASDAQ:RPAY - Get Free Report)'s stock price gapped up prior to trading on Tuesday after Morgan Stanley raised their price target on the stock from $4.50 to $5.00. The stock had previously closed at $5.36, but opened at $5.61. Morgan Stanley currently has an equal weight rating on the stock. Repay shares last traded at $5.22, with a volume of 95,873 shares traded.

A number of other analysts also recently commented on RPAY. Wall Street Zen downgraded shares of Repay from a "buy" rating to a "hold" rating in a report on Thursday, May 22nd. BMO Capital Markets dropped their target price on shares of Repay from $7.00 to $5.00 and set a "market perform" rating on the stock in a report on Tuesday, May 13th. Citigroup dropped their target price on shares of Repay from $8.00 to $4.50 and set a "neutral" rating on the stock in a report on Monday, May 19th. Keefe, Bruyette & Woods dropped their target price on shares of Repay from $6.50 to $4.50 and set a "market perform" rating on the stock in a report on Tuesday, May 13th. Finally, UBS Group dropped their target price on shares of Repay from $7.50 to $4.50 and set a "neutral" rating on the stock in a report on Tuesday, May 13th. Six equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $7.95.

Insider Activity at Repay

In related news, President Shaler Alias acquired 15,378 shares of the stock in a transaction dated Thursday, May 15th. The shares were acquired at an average price of $3.93 per share, with a total value of $60,435.54. Following the acquisition, the president owned 264,782 shares in the company, valued at approximately $1,040,593.26. The trade was a 6.17% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO John Andrew Sr. Morris acquired 86,761 shares of the stock in a transaction dated Thursday, May 15th. The shares were bought at an average cost of $3.89 per share, for a total transaction of $337,500.29. Following the acquisition, the chief executive officer owned 86,761 shares in the company, valued at $337,500.29. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders acquired 439,702 shares of company stock valued at $1,806,974 over the last three months. Insiders own 12.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in RPAY. Spire Wealth Management boosted its holdings in shares of Repay by 52.5% during the 1st quarter. Spire Wealth Management now owns 7,610 shares of the company's stock worth $42,000 after buying an additional 2,620 shares during the period. Principal Financial Group Inc. boosted its holdings in shares of Repay by 9.0% during the 1st quarter. Principal Financial Group Inc. now owns 166,377 shares of the company's stock worth $927,000 after buying an additional 13,722 shares during the period. ProShare Advisors LLC boosted its holdings in shares of Repay by 42.8% during the 4th quarter. ProShare Advisors LLC now owns 24,424 shares of the company's stock worth $186,000 after buying an additional 7,323 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Repay by 3.8% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 134,927 shares of the company's stock worth $1,029,000 after buying an additional 4,980 shares during the period. Finally, Private Management Group Inc. boosted its holdings in shares of Repay by 52.6% during the 1st quarter. Private Management Group Inc. now owns 2,654,679 shares of the company's stock worth $14,787,000 after buying an additional 914,529 shares during the period. Institutional investors and hedge funds own 82.73% of the company's stock.

Repay Trading Down 2.0%

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 company's fifty day moving average is $4.96 and its 200-day moving average is $5.36. The firm has a market capitalization of $522.46 million, a P/E ratio of -34.96 and a beta of 1.64.

Repay (NASDAQ:RPAY - Get Free Report) last posted its quarterly earnings data on Monday, August 11th. The company reported $0.20 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.20. The business had revenue of $75.63 million during the quarter, compared to the consensus estimate of $74.24 million. Repay had a negative net margin of 4.16% and a positive return on equity of 8.49%. Repay's quarterly revenue was up .9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.22 EPS. As a group, sell-side analysts anticipate that Repay Holdings Corporation will post 0.72 earnings per share for the current fiscal year.

Repay announced that its Board of Directors has authorized a share repurchase plan on Monday, May 12th that authorizes the company to repurchase $75.00 million in shares. This repurchase authorization authorizes the company to purchase up to 19% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.