Last Updated: 08 Nov 2024
Executive Summary
PAR Technology Corporation (PAR) is a leading provider of point-of-sale (POS) solutions to the restaurant and retail industries globally. The company's recent financial performance has been mixed, with revenue growth but negative earnings. Analysts remain bullish on the stock, with a consensus price target of $64.63.
Company Overview
PAR Technology Corporation was founded in 1968 and is headquartered in New Hartford, New York. The company's POS solutions include hardware, software, and services that help businesses manage their operations more efficiently. PAR serves a diverse customer base, including restaurants, retailers, and hospitality businesses.
Fundamental Analysis
Revenue: PAR's revenue for the trailing twelve months (TTM) was $425.9 million, a 12.4% increase year-over-year.
Earnings: The company reported a net loss of $2.38 per share for the TTM, compared to earnings per share of $0.09 in the prior year.
Profitability: PAR's profit margins have been under pressure in recent quarters, with the operating margin falling to -27.3% in the TTM.
Balance Sheet: The company has a strong balance sheet, with $109.6 million in cash and equivalents and no long-term debt.
Technical Analysis
Price Action: PAR's stock price has been trending higher in recent months, breaking out above its 200-day moving average.
Support and Resistance: The stock has support at its 50-day moving average of $56.38 and resistance at its 52-week high of $67.06.
Momentum: The stock's momentum indicators are positive, suggesting that the uptrend may continue.
Short Term Outlook
Analysts are generally positive on PAR's short-term outlook. The company's revenue growth is expected to continue, and its profitability is likely to improve as it implements cost-cutting measures. The stock is currently trading below its analyst target price, which suggests that there is potential for further upside.
Long Term Outlook
The long-term outlook for PAR is also positive. The company is well-positioned to benefit from the growing trend towards digital payments and mobile ordering. PAR's focus on innovation and customer service should help it maintain its leadership position in the POS market.
Analyst Recommendations
The consensus analyst recommendation for PAR is "Buy." Four analysts have a "Strong Buy" rating on the stock, four have a "Buy" rating, and two have a "Hold" rating. The average analyst target price is $64.63, which implies a potential upside of 12.5% from the current price.
