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.
