It has been a disappointing start to the week for the Openpay Group Ltd (ASX: OPY) share price.
In afternoon trade, the buy now pay later provider's shares are down 3.5% to $2.46.
Why is the Openpay share price dropping lower?
The Openpay share price has been on a very poor run of late and is now down 23% since this time in October. This is despite the company's performance remaining strong during this period.
For example, in the middle of last month Openpay released a trading update for October and November to date.
That update revealed that active plans were up 233% in October compared to the prior corresponding period and active customers were up 143%. This underpinned a 101% increase in total transaction value (TTV) to $25.8 million for the month.
This positive form continued in November with Openpay achieving its strongest ever daily TTV of $915,000. This was thanks to Australian online sales initiatives including Click Frenzy and was an 11% increase on the company's previous TTV record.
Management believes this bodes well ahead of the peak sales season of Black Friday, Cyber Monday, and Christmas.
That update also revealed that the company had signed major partnerships with US SaaS eCommerce group BigCommerce Holdings and online retailer Kogan.com Ltd (ASX: KGN).
Since then, the company has held its annual general meeting and spoke positively about current trading and its future prospects.
At the meeting, management commented: "To conclude, we have been extremely happy with our strategic delivery and strong operational performance, both in FY20 and in FY21 year to date. We have made significant progress in creating a great business and company, very much in line with our vision 'to change the way people pay, for the better' and with the pillars of our growth strategy."
Is this a buying opportunity?
One broker that sees the recent Openpay share price weakness as a buying opportunity is Shaw & Partners.
Last month its analysts responded to its trading update by reaffirming their (high risk) buy rating and $5.00 price target.
They believe the company is well-placed for growth and note that its shares trade at a significant discount to the likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P).
