Why is the EML Payments share price sinking 9% today?

The stock handed back most of its Wednesday gains this morning.

| More on:
A man at his desk in an office holds his hands up in the air in frustration while looking at the falling share price on his computer screen.

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

Key points

  • The EML Payments share price is falling 9% on Thursday to trade at $1.29
  • Its tumble comes amid reports the stock has been hit with a broker downgrade
  • It follows a 10.5% gain yesterday after the company announced it is collaborating with Spain's post office network to deliver a stimulus program

The EML Payments Ltd (ASX: EML) share price is tumbling on Thursday amid reports of a broker downgrade.

At the time of writing, the EML Payments share price is $1.29, 9.15% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is in the green right now, having gained 0.18%. Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is slipping 1.27%.

Let’s take a closer look at what might be weighing on the ASX 200 financial services company.

What’s dragging on EML Payments today?

The EML Payments share price is handing back most of its Wednesday gains amid reports that RBC Capital has cut its outlook on the stock.

The broker has downgraded EML Payments to ‘sector perform’, The Australian reports.

Though, it still has a $1.80 price target on the company’s shares, representing a 27% upside on the company’s previous close.

The reported downgrade follows yesterday’s news that the company is working with the operator of Spain’s post office network to roll out a national stimulus program.

It will be loading approximately half a million prepaid virtual cards with 400 euros each. The cards will be issued to eligible 18-year-olds who will be able to spend the funds on cultural products and activities.

The company’s stock launched 10.5% higher on the back of Wednesday’s announcement. Thus, some of today’s fall could be attributed to profit-taking.

EML Payments share price snapshot

Today’s tumble is just the latest for EML Payments this year.

The company’s share price has fallen more than 60% since the start of 2022.

It’s also 65% lower than it was this time last year.

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. has positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Two people shaking hands in the boardroom on a merger.
Technology Shares

Guess which ASX All Ords share just inked a new deal with Fortescue

Sadly, the deal hasn't been enough to save the ASX All Ordinaries share from the red.

Read more »

A woman shrugs and pulls awkward expression with her face.
Materials Shares

Is Novonix considered an ASX lithium share?

Can Novonix be considered an ASX lithium stock?

Read more »

One young boy jumps off a step ladder and is captured mid-air about to land on a seesaw where his friend is standing with a wide smile on his face looking at the camera and holding his thumbs up as though he is excited for the ride to come. Both young boys are wearing business suits.
Mergers & Acquisitions

Nearmap share price jumps 30% on takeover news

The Nearmap share price rallied 33% to $2.01 in early trade on Monday, but remains below the bid price.

Read more »

A group of five people dressed in black business suits scrabble in a flurry of banknotes that are whirling around them, some in the air, others on the ground as some of them bend to pick up the money.
Technology Shares

2 ASX tech shares about to go cash-flow positive

After massive interest rate rises, using your own cash to operate is so much better than borrowing to survive.

Read more »

Galan Lithium share price falling asx share price represented by a sad and flat battery
Technology Shares

Novonix share price tumbles 6% on Friday. What’s going on?

It's proving to be a rough day for this ASX 200 tech share.

Read more »

A mother and her young son are lying on the floor of their lounge sharing a tech device.
Technology Shares

Is the Megaport share price back on track after a broker upgrade?

A tech stock rally in the US and a broker upgrade helped Megaport shares to a 3% gain on Thursday.

Read more »

a graph indicating escalating results
Technology Shares

Why are ASX 200 tech shares flying higher on Thursday?

Inflation, interest rates, tech shares. What a recipe for Thursday's session.

Read more »

A happy woman sits on an outdoor deck with trees behind her and holds a credit card in one hand and her mobile phone in the other hand
Technology Shares

Why has the Block share price exploded 9% on the ASX today?

Why are Block shares booming in value this Thursday?

Read more »