Pushpay is a Kiwi company which provides software to the non-profit sector, focusing on engagement, payment, and administration.
Today, following a period of downturn, their NZX share price has rebounded by over 5%.
The current share price is $3.22, and the company has a market capitalisation of $902.94 million.
What has caused the uptick for Pushpay?
Earlier in the month, the Pushpay share price started to tumble — dropping 22% from $3.72 to $2.90 between 7 November and 21 November.
This coincided with the company’s financial report released on 7 November.
On the face of it, the report appeared positive — the company expected to break even in December and achieve positive earnings in 2019.
Furthermore, the losses reported for the first half of the financial year were $4.4 million, down from $12.5 million the year before. On top of this was a 48% increase in revenue.
However, there was an unexpected development. Pushpay co-founder Eliot Crowther was engaged in divorce proceedings with his ex-wife, who claimed to have received insider knowledge that the company’s share price was headed for a downturn.
Pushpay chose not to comment on this personal matter.
Nonetheless, this gave investors anxiety, which in turn caused the share price to dip. However, the general mood has since stabilised, and investors have returned to a bullish outlook.
What’s next for [NZX:PPH] shares?
The fundamentals for Pushpay are strong. Now that investment jitters have settled down, we anticipate an upward trajectory for Pushpay shares.
Editor, Money Morning New Zealand