Net 1 UEPS Technologies (UEPS) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Net 1 UEPS Technologies (NASDAQ:UEPS) from a hold rating to a sell rating in a research note released on Saturday morning, Zacks.com reports.

According to Zacks, “Net 1 U.E.P.S. Technologies provides its universal electronic payment system as an alternative payment system for the unbanked and under-banked populations of developing economies. Net 1 believes that it is the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to a bank account to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers. “

Several other research analysts have also recently commented on UEPS. ValuEngine cut shares of Net 1 UEPS Technologies from a buy rating to a hold rating in a report on Wednesday, May 1st. B. Riley initiated coverage on shares of Net 1 UEPS Technologies in a report on Friday, January 18th. They set a buy rating and a $10.00 price target for the company. Maxim Group reduced their price objective on shares of Net 1 UEPS Technologies to $7.00 and set a positive rating for the company in a research report on Monday, February 11th. Finally, BidaskClub downgraded shares of Net 1 UEPS Technologies from a hold rating to a sell rating in a research report on Friday, January 25th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and three have assigned a buy rating to the company. Net 1 UEPS Technologies currently has an average rating of Hold and an average price target of $11.67.

Shares of UEPS opened at $3.50 on Friday. Net 1 UEPS Technologies has a 1-year low of $2.78 and a 1-year high of $10.71. The stock has a market cap of $213.13 million, a price-to-earnings ratio of 1.79 and a beta of 0.81. The company has a quick ratio of 1.29, a current ratio of 1.33 and a debt-to-equity ratio of 0.01.

Net 1 UEPS Technologies (NASDAQ:UEPS) last announced its quarterly earnings results on Thursday, May 9th. The business services provider reported ($0.62) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.56). The company had revenue of $86.48 million for the quarter, compared to analyst estimates of $105.12 million. Net 1 UEPS Technologies had a negative net margin of 11.05% and a positive return on equity of 0.19%. Net 1 UEPS Technologies’s revenue was down 46.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.95 earnings per share. As a group, equities research analysts predict that Net 1 UEPS Technologies will post -1.34 earnings per share for the current fiscal year.

A number of hedge funds have recently added to or reduced their stakes in UEPS. IFP Advisors Inc raised its position in Net 1 UEPS Technologies by 1,166.0% in the 4th quarter. IFP Advisors Inc now owns 12,660 shares of the business services provider’s stock valued at $57,000 after purchasing an additional 11,660 shares during the last quarter. Ramsey Quantitative Systems raised its position in Net 1 UEPS Technologies by 33.7% in the 4th quarter. Ramsey Quantitative Systems now owns 21,995 shares of the business services provider’s stock valued at $103,000 after purchasing an additional 5,545 shares during the last quarter. United Services Automobile Association raised its position in Net 1 UEPS Technologies by 69.0% in the 4th quarter. United Services Automobile Association now owns 28,867 shares of the business services provider’s stock valued at $135,000 after purchasing an additional 11,781 shares during the last quarter. JPMorgan Chase & Co. raised its position in Net 1 UEPS Technologies by 148.6% in the 1st quarter. JPMorgan Chase & Co. now owns 66,071 shares of the business services provider’s stock valued at $237,000 after purchasing an additional 39,495 shares during the last quarter. Finally, Assenagon Asset Management S.A. purchased a new stake in Net 1 UEPS Technologies in the 4th quarter valued at $397,000. Hedge funds and other institutional investors own 55.03% of the company’s stock.

About Net 1 UEPS Technologies

Net 1 UEPS Technologies, Inc provides transaction processing services, financial inclusion products and services, and secure payment technologies in South Africa, the Republic of Korea, and internationally. The company develops and markets transaction processing solutions, including smart card-based alternative payment systems for the unbanked and under-banked populations of developing economies and for mobile transaction channels.

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