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PAR Technology (PAR) Surges 10.2%: Is This an Indication of Further Gains?

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PAR Technology (PAR) shares rallied 10.2% in the last trading session to close at $61.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1% loss over the past four weeks.

PAR Technology had initially announced a public offering of stock and convertible senior notes on Sep 13. The upswing in share price came after the company announced the pricing of the offering.

The conversion rate for the 2027 notes will be 12.987 shares of stock for every $1,000 of notes, which is equivalent to a stock price of $77. This represents a 37.5% premium to the price per share in the equity offering. The offering is expected to close on Sep 17, 2021.

Price and Consensus

Price Consensus Chart for PAR
Price Consensus Chart for PAR

This software provider for the hospitality industry is expected to post quarterly loss of $0.73 per share in its upcoming report, which represents a year-over-year change of -386.7%. Revenues are expected to be $71.69 million, up 30.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For PAR Technology, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PAR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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