Priority Technology Holdings (PRTH) in Strong Position Followed by MRI Transaction

The recent push in Priority Technology has made investment community bet on the stock as PRTH surged 45% in the past month. A strong business portfolio is what makes it a worthy stock for future investment. 

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The shares price of Priority Technology Holdings, Inc. (PRTH) crossed last one-year highest price mark in yesterday’s trading session after the company recently entered into an agreement with MRI software to sell its RentPayment business. In addition, as part of the deal Priority will also provide ongoing payment infrastructure as a service and processing to the new platform at MRI.

Priority’s shares surged as high as $4.32 on Sept. 12 which was the first time it crossed the $4 price mark in more than a one-year time period. 

The time seems to be good for investors of PRTH. The stock has soared more than 45% last month and is also above its 20 Day SMA. Considering PRTH’s recent earnings estimate revision activity, the stock looks to be a suitable investment option. Moreover, it has also has earned itself a Zacks Rank No.2 (Buy), which means that its recent momentum may continue for a bit longer. 

However, in today’s trading session PRTH has been trading in negative with almost down by 4.5% as of 2:47 P.M. EDT. This can happen after a major push as day traders can have an impact on the stock. 

Strong Business Portfolio

Priority’s recent monetization of the RentPayment Business will address leverage concerns while maintaining growth opportunities with new strategic relationships. The company is also working on automation cost reduction initiatives that have supported the firm and are expected to enhance further growth. 

The fastest-growing business segment of Priority Technology provides vertical-specific payment-enabled software solutions in connection with the Vortex API and Cloud fast-growing markets for emerging companies early in the cycle of digital adoption. This segment has four basic industry verticals which include real estate, health care, hospitability, and consumer finance. This segment has more than $6 billion in volume yielding 80% gross profit margins across more than 3,200 accounts. 

Moreover, the hospitality segment has recently reported triple-digit growth. The hospitality segment management anticipates continuing double-digit growth to triple-digit in the next year. The company believes that its e|tab’s new dine-in features will be a major push for the hospitality segment, which is currently under beta testing. 

Priority Technology Holdings made strong progress in the second quarter despite lockdown due to COVID-19. The company generated $92.4 million revenues, higher than last year’s revenues which were $92.1 million. The gross profit remained flat in comparison with prior year period. 

Priority Technology Holdings, Inc. (PRTH) expects to attain Adjusted EBITDA of $6.6 million to $6.8 million for July, reflecting a 60% incline year over year. In mid-August, the aggregate processing volume was exceeding $4 billion, showing a strong signal of revenue and adjusted EBITDA outcomes in-line with July’s results. This sets the stage for Priority Technology to record more than $11 billion during the current quarter.