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Repay Holdings (RPAY) Moves 10.5% Higher: Will This Strength Last?

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Repay Holdings (RPAY - Free Report) shares ended the last trading session 10.5% higher at $25. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.6% loss over the past four weeks.

The increase in share price can be attributed to Repay Holdings’ impressive fourth-quarter 2020 results. The company reported quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate by 112.50%. Revenues increased 23% year over year to $41.4 million.

Markedly, card payment volume and gross margin in 2020 surged 42% and 44% year over year, respectively, reflecting strong demand for Repay’s solutions.

Price and Consensus

Price Consensus Chart for Repay Holdings

This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -35.3%. Revenues are expected to be $45.39 million, up 15% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Repay Holdings, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RPAY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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