Paysafe (NYSE: PSFE) stock entered Wednesday trading with a gain of 11%, bolstering premarket gains of up to 9% following an announcement of internal stock purchases. The online payment provider is down over 70% annually, but is the internal purchase a signal that Paysafe is undervalued?
This morning’s press release revealed that Paysafe CEO Philip McHugh bought 290,000 shares for an aggregate total of $1M. Similarly, the move was mirrored by other company executives; who bought a total of 447,000 shares, making a grand total of $2.8M in internal purchases.
Whilst 447,000 shares are fractional given the company’s total market capitalization, insider purchases often act as bullish signals for a stock that is potentially undervalued at its current levels. The company had a tough time last month, after losing as much as 42% of the stock value after posting ill-conceived Q3 results. Whether Paysafe is undervalued or whether this is a simple method of regaining investor faith, the stock jumped 6% with the opening bells regardless.
Will today’s move from management be enough to see a resurgence in PSFE stock, or will the premarket momentum slowly run out as the trading day continues. PSFE stock is currently trading just over the $4 level, with an 11.25% daily gain.
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