The Novatti (ASX:NOV) share price is up 20% so far this week. What's going on?

This buy now, pay later company is rocketing ahead…

| More on:
Businessman cheering at desk with arms in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Novatti Group Ltd (ASX: NOV) share price is blasting ahead this week.

The buy now, pay later (BNPL) company's shares closed today trading at 34 cents apiece, a 20% gain since the start of the week.

Let's take a look at what might be happening at the buy now, pay later company.

Director confidence

The Novatti share price is surging ahead this week despite no news from the company. However, a recent show of confidence in the company by CEO and co-founder Peter Cook is worth noting.

Cook has bought $316,667 worth of shares, acquiring 1,666,667 shares at 19 cents each, a market announcement on 4 January revealed.

His purchase involved exercising options that were not due to expire until 30 November. Following this gain, he now owns 13,174,571 shares in the company.

The Novatti share price gained 20% on January 12 alone. This major movement came on the same day as fellow BNPL company Afterpay Ltd (ASX: APT) announced Bank of Spain has approved its takeover by Block Inc (NYSE: SQ). The Afterpay share price gained nearly 5% yesterday. As my Foolish colleague James reported, Afterpay may not be trading on the Australian share market much longer.

In April 2021, Novatti shares surged 32% on the back of an agreement with Afterpay. Afterpay chose Novatti to provide its services in New Zealand.

In October, Novatti announced it would acquire ATX, a payments fintech based in Malaysia.

Novatti proved to be one of the best performing ASX BNPL shares of 2021, gaining 15% over the year.

Novatti share price snapshot

The Novatti share price has soared around 39% in the past 12 months and 13% in the past month.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has returned more than 12% to investors in the past year.

The company commands a market capitalisation of roughly $117.75 million based on the current share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX 200 technology stocks led the market with a 1.99% rise while the benchmark index slipped 0.24%.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 30% to 40%

Analysts are tipping these shares to generate big returns over the next 12 months.

Read more »

A female worker in a hard hat smiles in an oil field.
Broker Notes

Buy BHP and this ASX 200 share next week

Here are a couple of shares that Bell Potter rate highly this month.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Share Market News

I'd listen to Warren Buffett and invest in ASX shares with wide economic moats

It could pay to follow in the footsteps of Warren Buffett. Here's what you need to know about moats.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Best Shares

Top oversold ASX shares to buy in February 2025

Hoping to bag an investment bargain this month?

Read more »

People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the trading week this Friday.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
52-Week Highs

Big ASX news: 10 ASX 200 shares hit new 52-week highs today

Do you own any of these lucky stocks?

Read more »