RPAY

Repay Holdings ($RPAY) Executives Bet Big: CEO and President Purchase $1.8M in Shares Following 60% Stock Plunge

05/16/2025 21:09

Top executives of payment processing technology firm Repay Holdings Corp ($RPAY) have made significant share purchases as the stock price hit its lowest levels in a year. Over two days on May 14 and 15, CEO John Morris and President Shaler Alias collectively acquired 439,702 shares worth approximately $1.8 million. Morris purchased 163,041 shares at an average price of $4.20 per share, followed by an additional 86,761 shares at $3.89, investing a total of $1.02 million. Simultaneously, Alias bought 174,404 shares at $4.15 per share, followed by 15,378 shares at $3.93 and an additional 118 shares at $4.15, committing around $780,000. These purchases come amid a significant decline in $RPAY's stock price. The company's shares, which traded around $10 in early June 2024, have steadily fallen to below $4, representing a loss of over 60% in value. Notably, following the quarterly earnings announcement in early March 2025, the stock plummeted 14% in a single day, dropping from $7 to below $6, and has continued its downward trajectory since. The insider buying is particularly noteworthy as it occurred immediately after the company's recent first-quarter results. On May 12, $RPAY reported Q1 2025 revenue of $77.33 million, down 4.2% year-over-year but exceeding analyst expectations of $75.72 million. Adjusted earnings per share came in at 22 cents, slightly down from 23 cents in the prior-year period but in line with market forecasts. Repay Holdings operates in the payment processing technology sector, providing integrated payment solutions to financial institutions, lenders, and other businesses. The company currently has a market capitalization of approximately $520 million, placing it in the small-cap category. This substantial insider buying by executive leadership can be interpreted as a strong vote of confidence in the company's future. Particularly notable is the cluster buying pattern, with both the CEO and President purchasing significant amounts of stock nearly simultaneously, which is typically viewed as a positive signal for investors. In contrast, in September 2024, company officer Jacob Hamilton Moore sold approximately 370,000 shares in four transactions totaling about $3 million, and in December 2024, CFO Timothy John Murphy sold 57,000 shares for approximately $470,000. The stock continued its decline following these insider sales by senior executives. $RPAY raised capital in July 2024 by issuing $287.5 million of 2.875% convertible notes and securing a $250 million revolving credit facility. While these financing activities were aimed at retiring existing debt and securing operational funding, the stock price continued to decline thereafter. The company reported earnings throughout 2024, with the third quarter showing positive momentum as revenue increased 10.5% year-over-year and earnings per share exceeded expectations. However, recent quarters have shown a slowdown in growth trajectories. Analysts currently maintain an average "buy" rating on $RPAY with a 12-month price target of $8 per share, suggesting over 100% upside potential from current trading levels. However, slowing performance metrics and intensifying industry competition remain key challenges for the company. The payment processing technology industry is rapidly evolving with the acceleration of fintech innovations and digital transformation in financial services. Companies like $RPAY must differentiate themselves through technological innovation and operational efficiency to compete with larger rivals. Management's substantial share purchases likely reflect their belief that the stock is undervalued and signals expectations for improved performance in the coming quarters. Investors should closely monitor the next earnings report and any additional insider trading activity for further indications of the company's trajectory.

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