Why are EML shares making news this week?

A woman shrugs and pulls awkward expression with her face.A woman shrugs and pulls awkward expression with her face.

The EML Payments Ltd (ASX: EML) share price is in the red today. EML shares are currently swapping hands at $1.53, a 3.48% fall.

For perspective, the S&P/ASX All Technology Index (ASX: XTX) is also sliding 0.8%. Block Inc (ASX: SQ2) is dropping 2.63%, while Zip Co Ltd (ASX: ZIP) shares are plunging 7.79%.

Let’s take a look at what is happening at EML Payments.

Secret presentation

EML Payments presented to 750 institutional investors at the Macquarie Australia conference in Sydney on Tuesday.

However, the media was not invited to the speech by EML Payments managing director Tom Cregan, the Australian Financial Review reported. According to the AFR, Macquarie informed the media that EML requested they did not attend.

As my Foolish colleague James reported yesterday, the EML Payments share price dropped 47% in April.

The EML share price dropped 38% on 26 April alone following the release of the company’s quarterly results.

Net profit fell 22% from the prior corresponding period. Furthermore, the company’s EBITDA (earnings before interest, tax, depreciation and amortisation) guidance for FY22 was slashed by 8% to $52 million from $55 million.

The company was also among the 10 most shorted ASX shares in the past week, although short interest has eased to 8.7%.

Share price snapshot

The EML share price has descended 73% in the past 12 months, 52% since the start of 2022.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 3.6% in the past year.

EML has a market capitalisation of $569.5 million based on the current share price.

The post Why are EML shares making news this week? 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.

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*Returns as of January 13th 2022

More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/0Ha8DGk

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