Wall Street Zen Downgrades Paysafe (NYSE:PSFE) to Hold

Key Points

• Wall Street Zen downgraded Paysafe from buy to hold, adding to a mixed analyst picture that currently leans cautious. MarketBeat says the stock now has an average rating of Reduce with a consensus target price of $10.12.
• Paysafe’s latest quarter beat expectations, with EPS of $0.41 versus the $0.40 estimate and revenue of $442.72 million versus $424.41 million expected. The company also reported a positive return on equity, though its net margin remained negative.
• At Friday’s open, Paysafe shares traded at $8.16, below the average analyst target, while the company showed a debt-to-equity ratio of 4.03 and a market cap of about $421.76 million. Insider selling and recent hedge fund activity were also noted, with some institutional investors increasing their stakes.

Paysafe (NYSE:PSFE - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

PSFE has been the subject of several other reports. Weiss Ratings lowered shares of Paysafe from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, May 14th. Zacks Research lowered shares of Paysafe from a "hold" rating to a "strong sell" rating in a research note on Wednesday. Susquehanna reissued a "neutral" rating and issued a $10.00 target price (up from $9.00) on shares of Paysafe in a report on Thursday, May 14th. BTIG Research lifted their target price on Paysafe from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $11.00 target price (up from $9.00) on shares of Paysafe in a report on Thursday, May 14th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $10.12.

Paysafe Price Performance

Shares of NYSE PSFE opened at $8.16 on Friday. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 4.03. The company has a market capitalization of $421.76 million, a price-to-earnings ratio of -2.31, a price-to-earnings-growth ratio of 0.52 and a beta of 1.74. Paysafe has a twelve month low of $5.95 and a twelve month high of $15.02. The business has a 50 day simple moving average of $7.57 and a 200-day simple moving average of $7.50.

Paysafe (NYSE:PSFE - Get Free Report) last announced its quarterly earnings data on Thursday, May 14th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.01. The firm had revenue of $442.72 million for the quarter, compared to analysts' expectations of $424.41 million. Paysafe had a positive return on equity of 11.32% and a negative net margin of 11.44%. As a group, equities research analysts expect that Paysafe will post 1.1 earnings per share for the current year.

Insider Buying and Selling at Paysafe

In other news, insider Richard Swales sold 10,000 shares of Paysafe stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $7.69, for a total transaction of $76,900.00. Following the sale, the insider owned 44,456 shares of the company's stock, valued at approximately $341,866.64. The trade was a 18.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website.

Institutional Trading of Paysafe

Several hedge funds have recently added to or reduced their stakes in PSFE. Geode Capital Management LLC boosted its position in Paysafe by 1.8% during the 2nd quarter. Geode Capital Management LLC now owns 399,449 shares of the company's stock worth $5,041,000 after acquiring an additional 7,155 shares during the period. Quantbot Technologies LP acquired a new position in shares of Paysafe during the second quarter valued at $106,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of Paysafe by 10.4% during the second quarter. Arrowstreet Capital Limited Partnership now owns 393,291 shares of the company's stock valued at $4,963,000 after purchasing an additional 36,994 shares during the period. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its stake in shares of Paysafe by 24.2% during the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 44,872 shares of the company's stock valued at $566,000 after purchasing an additional 8,729 shares in the last quarter. Finally, Ameriprise Financial Inc. raised its stake in shares of Paysafe by 18.8% during the second quarter. Ameriprise Financial Inc. now owns 182,237 shares of the company's stock valued at $2,300,000 after purchasing an additional 28,812 shares in the last quarter. Institutional investors own 54.39% of the company's stock.

About Paysafe

Paysafe is a global payments provider that delivers a comprehensive suite of online and offline payment solutions. The company operates a diverse portfolio of products, including digital wallets under the Skrill and Neteller brands, prepaid voucher services through paysafecard, and integrated payment processing solutions for merchants. Paysafe's platform is designed to serve a wide range of industries, from e-commerce and digital goods to gaming, financial services, and regulated verticals, offering tailored risk and compliance management alongside its core transaction capabilities.

Founded through a series of mergers and strategic acquisitions, Paysafe traces its origins to the launch of paysafecard in 2000 and the establishment of Optimal Payments in 1996.

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.