POSaBIT Systems Corporation (OTCMKTS:POSAF) Stock Falls 9% In a Week: But Why?

The payments sector now garners significant attention from investors nowadays due to the prospect of long term growth and today, it may be a good move to look into POSaBIT Systems Corporation (OTCMKTS:POSAF).

Market Reaction

On Tuesday, POSAF stock jumped 1.60% to $1.28 with 115k shares, compared to its average volume of 119k shares. The stock has moved within a range of $1.2100 – 1.3000 after opening trade at $1.30.

Earnings Recap

Yesterday, the company saw its stock suffer from a selloff and end the day with a decline of as much as 9%. The selloff came in reaction to the announcement of the company’s financial results yesterday. It may be a good move for investors to take a look at some of the highlights from the financial results.

In the quarter that ended on September 30, 2021 the company managed to bring in revenues of $6.3 million, which was a record and reflected year on year growth of as much as 173%. On a sequential basis, it worked out to a rise of 29%.

In light of the strong performance in the quarter, POSaBIT Systems also raised its projections for yearly revenues to the range between $19.5 million and $20 million. The payments infrastructure provided also announced that the transactional sales volume under card services came in at $106 million. That worked out to a year on year rise of as much as 151% from the $42.2 million under the same overhead in the prior year period.

Traders Review

POSAF stock is trading below the 20-Day and 50-Day Moving averages of $1.40 and $1.39 respectively. However, the stock is trading above the 200-Day moving average of $0.69. The stock is up 38% over the past 3-month.

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