The EML (ASX:EML) share price has lost 9% in 6 days. What’s happening?

The last week has been very rough.
The post The EML (ASX:EML) share price has lost 9% in 6 days. What’s happening? appeared first on The Motley Fool Australia. –

The EML Payments Ltd (ASX: EML) share price has been tumbling lately despite no news having been released by the company.

In addition to falling, the financial services company’s stock has been flying off the shelves.

An average month sees around 3.7 million shares in EML Payments swapping hands. However, over the last 6 sessions, more than 15 million have been traded.

At market close, the EML Payments share price is $3.86, 0.26% higher than its previous close and 8.75% lower than it was 6 trading days ago.

Let’s take a look at what might be driving EML Payments’ stock lower lately.

What’s up with EML Payments lately?

The EML Payments share price has had a rough trot lately despite the company maintaining its silence.

In fact, the last time the market heard from EML Payments was when the company released a transcript of its investor briefing on 20 August

So, what might have caused EML Payments’ stock to plunge 9%?

Perhaps it’s being driven down alongside that of its peers on the S&P/ASX All Technology Index (ASX: XTX).

Right now, the All Technology Index is 2.95% lower than it was 6 days ago, having fallen 95.6 points in that time. That’s despite the index’s 0.8% gain today.

Additionally, the company’s high volume of trades suggests it might be being targeted by short sellers.

And, indeed, the Australian Securities and Investments Commission reported that between 3.3% and 3.6% of the company’s outstanding shares were shorted each day between Wednesday and Friday last week.

However, It’s more than possible that the EML Payments share price isn’t being driven down by short sellers. As market watchers know, sometimes there isn’t a particular rhyme or reason as to why a stock gains or falls.

EML Payments share price snapshot

The EML Payments share price’s poor recent performance has added to its woes on the ASX.

Right now, the company’s shares are trading for 9% less than they were at the start of 2021. However, they have gained 28% since this time last year.

The post The EML (ASX:EML) share price has lost 9% in 6 days. What’s happening? appeared first on The Motley Fool Australia.

Should you invest $1,000 in EML Payments right now?

Before you consider EML Payments, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EML Payments wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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EML (ASX:EML) share price plunges 8% after reporting record results

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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