What on earth happened with the Payright (ASX:PYR) share price today?

The Payright (ASX: PYR) share price had a strange day today, rising more than 10% at one point… for no reason at all.

| More on:
A male ASX investor wearing glasses and a beanie and denim shirt puts his hand to his chin wondering whether to buy ASX shares

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 Payright Ltd (ASX: PYR) share price certainly had a rather strange day today. Payright shares opened at 97 cents this morning after closing at 96 cents a share yesterday.

But soon after open, investors lit a rocket under the Payright share price, pushing it up to a high of $1.06 (a 10.43% rise). However, the share price subsequently cooled off, but still ended the day at $1.02 a share. That's a rise of 5.73%.

Since we're in the middle of the ASX earnings season, you might assume that this sharp bump might be due to Payright reporting its financial results. But you'd be wrong. 

The company last gave a market update on its business back on 15 January. And that was a quarterly business update. Indeed, there has been no major news out of this company since 3 February. That was when Payright detailed a loan facility that the company has entered into.

So what's going on?

Well, it's not exactly clear. Payright is an ASX buy now, pay later (BNPL) company. It provides higher-value BNPL services on the more expensive products that the 'mainstream' BNPL providers like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) don't cover.

It's been growing at a healthy pace to be sure. Back in that quarterly update in January, Payright told investors that its gross merchandise value came in at $20.6 million, which was up 28% on the prior quarter. It also grew its customer base by 13% over the same period.

But the markets already knew that.

Could today's lift be put down to speculation? That wouldn't be a new scene that Payright investors. Just last week, the company got a 'speeding ticket' from the ASX after its shares raced 32% higher in one day, for no apparent reason at all. We saw a similar phenomenon occur in other ASX fintech and BNPL companies. That included Zip Co, as well as Novatti Group Ltd (ASX: NOV) and Douugh Ltd (ASX: DOU).

About the Payright share price

At today's close, the Payright share price gives the company a market capitalisation of $90.44 million. Although the shares have given investors a lot of substantial gains over the past week or so, the current share price is actually the same as the price that Payright IPOed at back in December.

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

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

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
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 »