Paysafe Limited [PSFE] fell -69.05% so far this year. What now?

Paysafe Limited [NYSE: PSFE] traded at a low on 12/12/22, posting a -3.97 loss after which it closed the day’ session at $1.21. The company report on December 8, 2022 that Paysafe Announces Reverse Stock Split.

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Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE) (PSFE.WS), a leading global payments platform, announced today that its Board of Directors has approved a consolidation and redesignation of the issued and unissued common shares of par value $0.001, and the unissued undesignated shares, of par value $0.001, at a ratio of 1-for-12 (the “reverse stock split”), such that after giving effect to the reverse stock split, the authorized share capital of the Company shall be comprised of $22,000,000 divided into 1,600,000,000 common shares of par value $0.012 each (the “Common Shares”) and 233,333,333.3 undesignated shares of par value $0.012 each. The reverse stock split will be effective at 4:01 p.m. (ET) on December 12, 2022, and the Common Shares will begin trading on a split-adjusted basis when the New York Stock Exchange (the “NYSE”) opens for trading on Tuesday, December 13, 2022. The Common Shares will continue to trade on the NYSE under the trading symbol “PSFE”, but will trade under the following new CUSIP number starting December 13, 2022: G6964L 206. The reverse stock split was approved by Paysafe’s shareholders at the special general meeting of shareholders held on December 8, 2022 with over 95% approval for all proposals.

As a result of the reverse stock split, every 12 common shares issued and outstanding as of the effective date will be automatically combined into one Common Share. Outstanding warrants, equity-based awards and other outstanding equity rights will be proportionately adjusted. No fractional shares will be issued as a result of the reverse stock split. Where shareholders would otherwise be entitled to fractional shares as a result of the reverse stock split because they hold a number of shares not evenly divisible by 12, such shareholders will automatically be entitled to an additional fraction of a share to round up to the next whole Common Share of par value $0.012. The reverse split affects all shareholders uniformly and will not alter any shareholder’s percentage interest in the Company’s equity, except to the extent that the reverse split results in shareholders owning an additional share due to the fractional shares, as described above.

The results of the trading session contributed to over 5650664 shares changing hands. Over the past one week, the price volatility of Paysafe Limited stands at 8.07% while the volatility over the past one month is 9.54%.

The market cap for PSFE stock reached $977.89 million, with 725.86 million shares outstanding and 527.55 million shares in the current float. Compared to the average trading volume of 3.73M shares, PSFE reached a trading volume of 5650664 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Paysafe Limited [PSFE]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PSFE shares is $2.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PSFE stock is a recommendation set at 3.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Susquehanna have made an estimate for Paysafe Limited shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on August 31, 2022. While these analysts kept the previous recommendation, RBC Capital Mkts dropped their target price from $4 to $3. The new note on the price target was released on August 11, 2022, representing the official price target for Paysafe Limited stock. Previously, the target price had yet another drop from $2.25 to $2, while Credit Suisse kept a Underperform rating on PSFE stock.

The Average True Range (ATR) for Paysafe Limited is set at 0.13, with the Price to Sales ratio for PSFE stock in the period of the last 12 months amounting to 0.66. The Price to Book ratio for the last quarter was 1.13, with the Price to Cash per share for the same quarter was set at 3.35. Price to Free Cash Flow for PSFE in the course of the last twelve months was 1.45 with Quick ratio for the last quarter at 1.10.

How has PSFE stock performed recently?

Paysafe Limited [PSFE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -15.38. With this latest performance, PSFE shares dropped by -9.02% in over the last four-week period, additionally sinking by -47.62% over the last 6 months – not to mention a drop of -69.60% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PSFE stock in for the last two-week period is set at 38.04, with the RSI for the last a single of trading hit 32.12, and the three-weeks RSI is set at 40.84 for Paysafe Limited [PSFE]. The present Moving Average for the last 50 days of trading for this stock 1.4204, while it was recorded at 1.3280 for the last single week of trading, and 2.1757 for the last 200 days.

Paysafe Limited [PSFE]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Paysafe Limited [PSFE] shares currently have an operating margin of +5.43 and a Gross Margin at +42.09. Paysafe Limited’s Net Margin is presently recorded at -7.46.

Return on Equity for this stock declined to -5.58, with Return on Assets sitting at -2.54.

Paysafe Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.10.

Insider trade positions for Paysafe Limited [PSFE]

There are presently around $419 million, or 64.70% of PSFE stock, in the hands of institutional investors. The top three institutional holders of PSFE stocks are: BLACKSTONE INC. with ownership of 130,976,349, which is approximately 0% of the company’s market cap and around 27.50% of the total institutional ownership; CANNAE HOLDINGS, INC., holding 59,758,642 shares of the stock with an approximate value of $72.31 million in PSFE stocks shares; and FIDELITY NATIONAL FINANCIAL, INC., currently with $60.5 million in PSFE stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Paysafe Limited stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 61 institutional holders increased their position in Paysafe Limited [NYSE:PSFE] by around 10,517,142 shares. Additionally, 105 investors decreased positions by around 16,470,237 shares, while 51 investors held positions by with 319,570,675 shares. The mentioned changes placed institutional holdings at 346,558,054 shares, according to the latest SEC report filing. PSFE stock had 15 new institutional investments in for a total of 912,552 shares, while 42 institutional investors sold positions of 6,843,204 shares during the same period.

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