Barrington is Buying This "Undiscovered" Penny Stock

Analysts are already bullish on PYDS stock

by Karee Venema

Published on Jan 30, 2019 at 2:06 PM

The shares of Payment Data Systems, Inc. (NASDAQ:PYDS) are surging, after Barrington Research initiated coverage with an "outperform" rating and $5 price target -- a 123% premium to last night's close. The brokerage firm called PYDS "an undiscovered micro-cap stock with a disruptive technology application in the payment facilitator platform."

In reaction, PYDS stock has shot up 11.2% to trade at $2.51, putting it on track for its best day since March 6. The shares hit a 14-month low of $1.38 on Dec. 31, but spent most of 2018 bouncing between support at $1.60 and resistance around $2. By year's end, they had shed 37.8% over the 12-month time period, but are up 51.8% so far in 2019.

pyds stock daily chart jan 30

Barrington's bullish outlook on Payment Data Systems isn't new, with 100% of those in coverage already maintaining a "buy" or better rating on the stock. Plus, the average 12-month price target of $4.50 is a 78.6% premium to current trading levels.

Short sellers, meanwhile, have been exiting their positions for most of the last year. Short interest is down 60% from its mid-March peak, and now accounts for just 2.3% of PYDS stock's available float. However, it would still take bears more than a week to cover their remaining bets, at the equity's average daily pace of trading.


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.
Options Bulls, Analysts Unfazed by AMD's Mixed Earnings
AMD was overdue for bull notes anyway
Amazon Stock Lands Double Dose of Pre-Earnings Bull Notes
Amazon stock recently pulled back to its 50-day trendline
The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.