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Priority Technology Holdings, Inc. PRTH stock has shown remarkable growth over the past year. The stock has gained 227.3%, outperforming the industry's 53.6% rally and the Zacks S&P 500 composite's 18.5% growth.
One Year Price Performance
Image Source: Zacks Investment Research
PRTH has performed better than its industry peers, such as Byrna Technologies Inc. BYRN and Cellebrite CLBT. BYRN has gained 129.8% and CLBT has returned 59.1% over the same period.
In the last trading session, the PRTH stock closed at $10.55, 18.2% down from the 52-week high of $12.47. The stock is trading above its 50-day moving average, indicating bullish sentiment among investors.
The question of whether Priority Technology serves as a buying opportunity after rallying for the past year needs to be answered. Let us find out.
Reseller Growth: Road to PRTH’s Long-Term Success
In 2023, Priority Technology had nearly 1,200 partners with whom it maintained strong reseller relationships. Furthermore, the company reported that one reseller contributed more than 10% of the total bankcard processing volume and represented 14% of its total bankcard processing volume in 2023.
In the third quarter of 2024, management stated resellers to be the company’s key growth driver. The 9.7% year-over-year growth in merchant bankcard processing dollar value in the third quarter of 2024 could be a testament to management’s remarks. PRTH aims to expand its distribution network to reach new partners, and we believe that its technology offerings can attract and retain high-quality resellers focused on growth.
By offering resellers agile tools to manage their sales and grow their merchant portfolio, the company can acquire and retain merchants. Being a consultative partner is instrumental to maintaining strong relationships with resellers and improving volume growth trends.
Mobile Payment Market Expansion Drives PRTH’s Top Line
Priority Technology is well-positioned to capitalize on the surge in the global mobile payment market. It was valued at $88.5 billion in 2024 and is expected to witness a CAGR of 38% from 2025 to 2030. Improved safety, ease of use, quick functions, inexpensive operations and widespread Internet access have driven the market. The market is anticipated to grow on the back of the surge in smartphone usage, easy access to high-speed Internet, and the preference of global and domestic businesses towards offering alternative mobile payment via official platforms.
The company’s strong performance in the third quarter of 2024 led to a 20.1% rise in the top line year over year. Key metrics such as merchant bankcard processing dollar value and B2B issuing dollar volume improved, demonstrating PRTH’s ability to leverage market trends efficiently. In the enterprise payments segment, the company observed 40.9% year-over-year growth in average billed clients, and the average monthly new enrolments rose 11.7%, highlighting its ability to successfully execute innovative strategies.
Priority Technology is poised to continue its upward trajectory as the demand for mobile payment technologies grows by providing efficient payment infrastructure and indulging in innovative solutions.