Priority Technology (NASDAQ:PRTH) Cut to Hold at Lake Street Capital

Lake Street Capital downgraded shares of Priority Technology (NASDAQ:PRTH) from a buy rating to a hold rating in a report issued on Monday, Marketbeat Ratings reports. Lake Street Capital currently has $8.05 price objective on the stock, down from their prior price objective of $13.00.

A number of other analysts have also recently commented on PRTH. Alliance Global Partners cut Priority Technology from a “buy” rating to a “neutral” rating and set a $7.00 price target for the company. in a research note on Thursday, August 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Priority Technology in a research note on Wednesday, June 24th. Zacks Research cut shares of Priority Technology from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Keefe, Bruyette & Woods lowered their target price on shares of Priority Technology from $7.50 to $6.50 and set a “market perform” rating for the company in a research note on Friday, August 7th. Finally, Wall Street Zen lowered shares of Priority Technology from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $8.67.

Priority Technology Price Performance

Shares of Priority Technology stock opened at $7.80 on Monday. The business has a fifty day simple moving average of $6.00 and a 200 day simple moving average of $5.87. The stock has a market cap of $643.03 million, a PE ratio of 11.30 and a beta of 1.55. Priority Technology has a 12 month low of $4.44 and a 12 month high of $7.91.

Priority Technology (NASDAQ:PRTH) last released its earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.03. Priority Technology had a negative return on equity of 104.91% and a net margin of 5.61%.The firm had revenue of $262.26 million for the quarter, compared to analyst estimates of $257.81 million. Analysts expect that Priority Technology will post 1.23 EPS for the current fiscal year.

Institutional Investors Weigh In On Priority Technology

Large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Priority Technology during the 2nd quarter valued at about $15,788,000. Norwood Investment Partners LP bought a new stake in Priority Technology during the 2nd quarter worth approximately $3,615,140. FourWorld Capital Management LLC increased its stake in Priority Technology by 330.0% during the 1st quarter. FourWorld Capital Management LLC now owns 1,583,904 shares of the company’s stock worth $7,476,000 after purchasing an additional 1,215,583 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in Priority Technology during the 4th quarter worth approximately $584,000. Finally, Bank of New York Mellon Corp acquired a new stake in Priority Technology during the 2nd quarter worth approximately $664,000. 11.52% of the stock is currently owned by institutional investors.

Key Priority Technology News

Here are the key news stories impacting Priority Technology this week:

• Positive Sentiment: Priority Technology agreed to be acquired by an investor group led by Chairman and CEO Thomas Priore for $8.05 in cash per share. The proposed transaction has helped lift the stock toward the offer price and provides a defined valuation benchmark for shareholders. Priority Technology Holdings stock gains as $8.05 buyout sets a ceiling
• Neutral Sentiment: Keefe, Bruyette & Woods raised its price target from $6.50 to $8.00 and maintained a “market perform” rating. The target increase recognizes the buyout valuation but suggests limited upside beyond the proposed consideration. Keefe, Bruyette & Woods rating update
• Negative Sentiment: Kahn Swick & Foti is investigating whether the $8.05 offer adequately compensates shareholders and whether the sale process was fair, particularly because the buyer group is led by the company’s chief executive. Such scrutiny could create uncertainty or delay completion, although it could also seek improved terms. Priority Technology Investor Alert
• Negative Sentiment: BFA Law and Brodsky & Smith also announced investigations related to the merger. The multiple legal reviews add headline and transaction risk for PRTH investors, despite no allegations or outcome being established in the reports. BFA Law investigation notice
• Negative Sentiment: Lake Street Capital lowered its rating to “hold,” reinforcing the view that the proposed $8.05 consideration largely captures the stock’s near-term value. Priority Technology rating lowered to Hold

Priority Technology Company Profile

Priority Technology Holdings, Inc (NASDAQ: PRTH) is a payments technology company that provides commerce and payment-processing solutions to businesses, financial institutions and software providers. Its platform supports card payments, electronic payments and other transaction types, helping clients accept, manage and reconcile payments across in-person, online and business-to-business channels.

The company offers merchant acquiring and payment enablement services, including point-of-sale and e-commerce payment acceptance, payment gateway capabilities, automated clearing house (ACH) transactions, electronic invoicing and accounts-payable solutions.