The EML Payments (ASX:EML) share price zoomed 4% higher today

It’s been a rollercoaster few months for EML shares.

| More on:
happy woman using phone outside

Image source: Getty Images

The EML Payments Ltd (ASX: EML) share price was gaining today, despite no news having been released by the financial services company. At close, the EML share price is $3.63 – 4.3% higher than its previous closing price.

That’s particularly impressive considering the broader market is sliding today. The S&P/ASX 200 Index (ASX: XJO) closed down 0.65%, while the All Ordinaries Index (ASX: XAO) dropped 0.57%.

For the time being, the EML share price seems to be recovering nicely from a disastrous May, within which it sank a whopping 42%. The dramatic fall was seemingly spurred by concerns from the Central Bank of Ireland that EML’s PFS Card Services business may have failed to comply with anti-money laundering and counter terrorism frameworks and governance.

Let’s take a look at the last time we’ve heard from EML Payments, and what its share price has been up to lately.

The month that’s been

Over the last month, the market has only heard one piece of price sensitive news from EML.

It released its third-quarter trading update on 7 June. The news saw the EML share price finish the day 4.19% higher. It also gained another 12.64% over the 3 days following the release.

Within its third quarter update, EML stated its gross debit volume (GDV) had increased 52% to $14.9 billion, and its revenue had increased by 65% to $143.5 million.

The company’s earnings before interest tax, depreciation, and amortisation (EBITDA) also increased. It was up 62%, reaching $43.8 million.

EML also stated it had 368 deals underway, with 56 of those in the contract negotiation stage. It estimated the GDV of its pipeline at maturity to be $8.3 billion.

Finally, the company’s acquisition of Sentenial and Nuapay, announced in April, was expected to close sometime between early July and late August, depending on approvals.

EML Payments share price snapshot

Over the course of June, the EML payment share price regained 6.1%.

With today’s gains included, EML shares are now 13% below what they were at the beginning of 2021. However, the EML share price has broken even over the last 52-weeks. It’s currently 5.03% higher than it was this time last year.

The company has a market capitalisation of around $1.3 billion, with approximately 361 million shares outstanding.

Should you invest $1,000 in EML Payments right now?

Before you consider EML Payments, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and EML Payments wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares