What’s going on with the EML Payments (ASX:EML) share price?

The company isn’t having a great start with its most recent acquisition.
The post What’s going on with the EML Payments (ASX:EML) share price? appeared first on The Motley Fool Australia. –

The EML Payments Ltd (ASX: EML) share price closed in negative territory on Wednesday. This comes despite no news being released by the payments company since last Friday.

EML Payments shares finished the day down 2.86% to $3.73. In comparison, the S&P/ASX All Technology Index (ASX: XTX) is up 0.09% to 3,026 points.

What’s causing EML Payments share price to fall?

A possible catalyst for investors selling off EML Payments shares could be ongoing concerns about the company’s issues with one of its acquisitions.

Last week, EML Payments revealed it had identified historical deficiencies related to dormant and expired e-money accounts in its subsidiary, Irish-based business Prepaid Financial Services (PFS).

The company advised that the discrepancy was for periods prior to its acquisition of PFS. It said that normally these funds would be kept in “safeguarding accounts” for 6 years post expiry of the account.

The audit is not expected to impact EML Payments’ profit and loss account as the issues were before its acquisition. However, a cash injection of around £14.1 million ($26.6 million) will be required into safeguarded accounts held by PFS UK.

At the end of June, the company had an unaudited cash balance exceeding $140 million.

Pleasingly, EML Payments said that the monies may be released back over an extended period of time.

EML Payments share price summary

Over the course of the last 12 months, EML Payments shares accelerated to an all-time high in April before nosediving. The severe drop came as the Central Bank of Ireland cited significant regulatory concerns with PFS Card Services.

As a result, the EML Payments share price crashed below $2.80. Since then, the comany’s shares have moved sideways, down 11% year-to-date.

Based on valuation grounds, EML Payments presides a market capitalisation of roughly $1.34 billion, with 361 million shares on issue.

The post What’s going on with the EML Payments (ASX:EML) share price? 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 May 24th 2021

More reading

ASX 200 midday update: GUD results, Woodside update, ANZ appointment

EML (ASX:EML) share price up 5% on Tuesday
The EML Payments (ASX:EML) share price is falling today. Here’s why
Two months on, what is the outlook for the EML Payments (ASX:EML) share price?
The EML Payments (ASX:EML) share price surges 5% today

Motley Fool contributor Aaron Teboneras 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!