Why the Tyro (ASX:TYR) share price is on watch today

The Tyro Payments Ltd (ASX: TYR) share price is one to watch as the company prepares a response to activist short-sellers.

| More on:
close up of man's eye looking through magnifying glass representing asx 200 share price on watch

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tyro Payments Ltd (ASX: TYR) share price is one to watch this morning as the Aussie payments company looks to respond to an activist short-selling report.

Why is the Tyro share price on watch?

According to an article in the Australian Financial Review (AFR), Tyro executives have been working on a response to the allegations.

The Tyro share price plummeted 11.8% lower on Friday after a short-seller released a damaging report. Viceroy Research alleged that 50% of Tyro's payment terminals were experiencing problems — more than the company had previously announced.

Tyro had previously updated the ASX on the terminal outage in early January. On 13 January, the company said 19% of merchants were "impacted" by the outage first announced on 7 January.

The outage has proven more difficult to fix than Tyro had first hoped. That has seen transaction volumes impacted and updates unable to run for Tyro's merchants. That's put the Tyro share price under pressure in recent days.

The Viceroy report was released during trading hours, meaning the company's shares plummeted before a trading halt was called.

Prior to the payments issue coming to light, shares in the Aussie payments group had been performing well. In fact, the Tyro share price climbed 228.9% from 19 March 2020 to the end of the year.

However, 2021 hasn't started in a strong fashion for Tyro shareholders. The company's shares have slumped 31% since the start of the year thanks to the outage issue.

Tyro is far from the first Aussie company to come under fire from short-sellers. Both Seek Ltd (ASX: SEK) and WiseTech Global Ltd (ASX: WTC) have been among those targeted by short-sellers recently.

Foolish takeaway

The Tyro share price is one to watch today as the market waits for the company's response. The Viceroy Research report sent the company's shares plummeting on Friday — shareholders will want to see a strong response from the company this week.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Broker looking at the share price.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A smiling woman at a hardware shop selects paint colours from a wall display.
Broker Notes

After its strategy day, what does Macquarie think Wesfarmers shares are worth?

Let's see what the broker is saying about this blue chip.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »