Why Shift4 Payments Stock Surprisingly Soared Today
Shares of fintech company Shift4 Payments (NYSE: FOUR) soared on Wednesday, which is surprising considering that it didn't have any news scheduled for today. But CEO Jared Isaacman has been busy buying shares of the payments processing company, and this has investors upbeat about its prospects. As of 2 p.m. ET on Wednesday, Shift4 stock was up 10%.
The bullish CEO is turning heads
According to a filing with the Securities and Exchange Commission (SEC), Isaacman acquired nearly 86,000 shares of Shift4 yesterday. This often happens with publicly traded companies. That said, Isaacman's purchase is special because he used his own money at market prices -- no special deals or compensation here.
Shift4 stock has underperformed the S&P 500 over the last year and over the last three years, something that has frustrated Isaacman personally. But he's clearly bullish on his company's prospects, given that he's putting his own money on the line.
Management knows what's going on with the business better than anybody. Therefore, investors get excited when they see management buying shares, which is why Shift4 stock is up today.
Staying the course
As mentioned, Isaacman has been frustrated with the underperformance of Shift4 stock. Despite growing revenue by 29% year over year in the first quarter of 2024 and being consistently profitable, it doesn't seem to impress investors. This had motivated the company to find a buyer to go private. But in the first quarter, it was officially announced that offers had been rejected and it will remain publicly traded.
I think that's the right move for Shift4 -- growth has been great and profits are consistent. I believe shareholders, which includes Isaacman, will profit over the long term as the business continues to win customers and grow.
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Jon Quast has positions in Shift4 Payments. The Motley Fool recommends Shift4 Payments. The Motley Fool has a disclosure policy.
