This sleeper stock is soaring: Payment Data Systems, Inc. (NASDAQ:PYDS)

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Payment Data Systems, Inc. (NASDAQ:PYDS) currently has a share float of 6.02M and 12.32M shares outstanding.

Let’s take a look at the technical analysis.

Shares of Payment Data Systems, Inc. (NASDAQ:PYDS) are currently poised at 38.06% from the open today and are trading at $1.85. More than 4,449,853 shares have exchanged hands compared to an average trading volume of 45.65K. At the current pps, the market cap stands at $22.79M. The stock prices of Payment Data Systems, Inc. (NASDAQ:PYDS) are currently trading at -51.32% below its 52 week high and 85.00% above its 52 week low.

The Barchart Technical Opinion rating is a 48% Buy with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Strong. Long term indicators mostly agree with the trend.

Payment Data Systems, Inc. (NASDAQ:PYDS) has been in the news for all the right reasons. Recently, Payment Data Systems, Inc. (NASDAQ:PYDS) announced that

Payment Data Systems, Inc. (NASDAQ:PYDS) is all set to announce its earnings on Apr 13/a. As per Zack’s analyst ratings, Payment Data Systems, Inc. (NASDAQ:PYDS) currently has an average brokerage rating of . On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:PYDS) is $ with a high of $ and a low of $.

The The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA’s of 1.47 and 1.48 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term. .

The relative strength index (RSI) is a momentum osciallator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 71.16 suggesting a bullish price action.

As such, while we believe Payment Data Systems, Inc. (NASDAQ:PYDS)represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

Payment Data Systems is a service bureau clearinghouse in the electronic bill presentment and payment industry. Electronic bill presentment and payment is the process of presenting a bill in a secure environment on the Internet and facilitating payment of the bill utilizing an electronic transfer of funds. The company provides a scalable, branded, and secure end-to-end electronic bill presentment and payment solution, allowing billers to realize the advantages, while requiring significantly lower up-front costs, shorter lead times on initial implementation and upgrades.

We are going to take a close look at Payment Data Systems Inc. (NASDAQ: PYDS) today to get a better sense of the company and its current status, as well as the opportunity it may offer for prospective investors. Today’s focus will be a fundamental evaluation of the stock from top to bottom.

As such, let’s start with the top line: Revenue trends.

Last quarter, the company saw its overall sales move to 2.89M in total revenues. That represents an overall change in revenues, on a quarterly year/year basis, of -0.27%. If we translate that into sequential terms, the company saw sales decline by -0.06% from quarter to quarter.

Sales data gives you a great sense of whether or not a go-to-market strategy is hitting the right note. But operational execution on every level is how great companies manifest their greatness. And that only really shows up on the bottom line. As such, let?s take a look at that set of data.

Payment Data Systems Inc. (NASDAQ: PYDS) is intriguing when broken down to its core data. The cost of selling goods last quarter was 2.23M, yielding a gross basic income of 661,986. For shareholders, given the total diluted outstanding shares of 8.02M, this means an overall earnings per share of (0.03). Note, this compares with a consensus analyst forecast of in earnings per share for its next fiscal quarterly report.

With that in mind, what are folks on Wall Street expecting out of the company? Let?s take a quick look before we dig into the balance sheet and the company?s cash situation.

At present, analysts hold a consensus average recommendation of . This is based on a total of . While we don’t suggest taking analyst recommendations as face value plans for action in a portfolio, we do think it is important to note where consensus is on a stock to understand what basic assumptions are perhaps already discounted into market pricing of shares of the stock.

As far as price targets, analysts currently have an average target on shares of at . In addition, if we turn to next year, we see estimates of a fiscal year forecast to bring about in total earnings per share. On a median price to earnings ratio basis, that outlook adds up to a valuation of times earnings.

At the end of the day, things aren’t always rosy. And it’s important to know whether or not a company has the intestinal fortitude to weather a storm. And that?s a question of balance sheet health and cash flows from operations.

As the reader is no doubt aware, for any company, balance sheet health sits at the heart of the company’s capacity to stand up to the demands and obligations incurred by normal and contingent operations, which in turn lies at the core of a company’s ability to retain the faith of investors in the marketplace. For NASDAQ: PYDS, the company presently holds about 19.92M in cash in the coffers. That cash is balanced against about – in total current liabilities.

It’s important to consider both a static and dynamic picture, particularly where debt levels are concerned. This means, we need to take into account any trends. In this case, the company’s debt has been growing. The company also has 69.51M in total assets, balanced by 60.5M in total liabilities, which suggests where this story might go under adverse economic or financial conditions.

As far as cash flows, the company saw a free cash flow last quarter of 258,903, representing a quarterly net change in cash of (172,852). On a net operating level, the company saw about 262,857 in cash flow.

We will update the interesting story of Payment Data Systems Inc. (NASDAQ: PYDS) as new events transpire.

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