Last Updated: 13 Nov 2024
Executive Summary
Priority Technology Holdings Inc. (PRTH) is a provider of merchant acquisition, integrated payment software, and merchant payment solutions. The company has a market capitalization of $570 million and trades on the NASDAQ exchange. PRTH has been reporting negative earnings per share (-$0.42) and a book value of -$2.151. Despite these challenges, the company has a strong operating margin (17.1%) and a return on equity of 56.4%. Analysts have a consensus rating of "Buy" for PRTH, with a target price of $10.5. The stock is currently trading at $8.55, offering potential upside for investors.
Company Overview
Priority Technology Holdings Inc. was founded in 2004 and is headquartered in Alpharetta, Georgia. The company provides a range of payment solutions to merchants, including merchant acquisition, integrated payment software, and merchant payment solutions. PRTH has a network of over 100,000 merchants and processes over $10 billion in annual transaction volume.
Fundamental Analysis
Revenue: PRTH has reported revenue of $851.9 million for the trailing twelve months, representing a 20.1% increase year-over-year.
Earnings: The company has reported a net loss of $17.6 million for the trailing twelve months, resulting in earnings per share of -$0.42.
Profitability: PRTH has a gross profit margin of 18.2% and an operating margin of 17.1%. The company's return on assets is 4.74% and its return on equity is 56.4%.
Balance Sheet: PRTH has a negative book value of -$2.151 and total debt of $216.7 million. The company's current ratio is 1.24 and its debt-to-equity ratio is 0.38.
Technical Analysis
Price Action: PRTH's stock price has been trending higher in recent months, breaking above its 50-day and 200-day moving averages. The stock is currently trading above its support level of $8.20 and below its resistance level of $9.00.
Indicators: The relative strength index (RSI) is currently at 62, indicating that the stock is overbought. The moving average convergence divergence (MACD) is also above its signal line, indicating that the stock is in a bullish trend.
Short Term Outlook
In the short term, PRTH's stock price is likely to continue to trade within the range of $8.20 to $9.00. The stock is overbought according to the RSI, which suggests that a pullback could be in order. However, the MACD is still bullish, indicating that the overall trend is still positive.
Long Term Outlook
In the long term, PRTH's stock price is likely to benefit from the growing demand for electronic payments. The company has a strong market position and a loyal customer base. As the company continues to grow its revenue and improve its profitability, its stock price is likely to appreciate.
Analyst Recommendations
Analysts have a consensus rating of "Buy" for PRTH, with a target price of $10.5. Three analysts have a "Buy" rating, one has a "Hold" rating, and none have a "Sell" rating. The average target price represents a potential upside of 22.9% from the current stock price.
