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…

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.

Businessman cheering at desk with arms in the air.

Image source: Getty Images

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.

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