The Openpay (ASX:OPY) share price is down 23% in 2 months: Time to buy?

The Openpay Group Ltd (ASX:OPY) share price has fallen heavily over the last couple of months. Is this a buying opportunity?

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.

Falling ASX shares prices represented by scared male investor holding hand to head

Image source: Getty Images

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).

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Codan share price A dismayed kid dressed as a scientist stands with his back to a rocket crashed into the ground
Share Fallers

Xero shares crash to a 7-year low after a brutal sell-off

The decline has wiped out years of share price gains.

Read more »

Two miners at a mine site on their tablets, with mining machinery behind them.
Share Fallers

Why has the Mineral Resources share price fallen 12% this week?

It’s been another tough week for Mineral Resources shareholders.

Read more »

A man holds his hand to his chin with a furrowed brow, making an expression of puzzlement or confusion.
Share Fallers

Top 3 ASX 200 shares now below their 200-day moving average

Are these businesses still a buy?

Read more »

A young man clasps his hand to his head with a pained expression on his face and a laptop in front of him.
Share Fallers

What are the most shorted ASX shares on the market right now?

Two names, two opposite bear cases.

Read more »

An arrow crashes through the ground as a businessman watches on.
Share Fallers

Warning: Corporate Travel shares have crashed 80%. What on earth just happened?

An 80% crash has left investors asking what went so wrong.

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
Share Fallers

The five worst-performing ASX 200 shares in August unmasked

Investors sent these five ASX shares crashing 17% to 23% in August. But why?

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
Share Fallers

Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week

ASX investors punished Lendlease, Megaport, and JB Hi-Fi this week. But why?

Read more »

Woman checking out new laptops.
Consumer Staples & Discretionary Shares

Down 14% today: Are JB Hi-Fi shares now a bargain-bin buy?

Could JB's plunge mean a bargain buy?

Read more »