Connect with us

Hi, what are you looking for?


Shift4 Payments (FOUR) stock price pattern points to more pain ahead

Shift4 Payments (NYSE: FOUR) stock price has pulled back violently in the past few days as investors focus on a short-seller report. The shares plunged to a low of $57.87, the lowest level since February 28. In all, the shares have plunged by more than 20% from the year-to-date high. It has jumped by more than 17% this year.

Blue Orca short report on Shift4 Payments

The main reason for the collapse of Shift4 Payments is a short-seller report that alleged several important issues in the company. The core argument is that the company markets itself as a fintech firm that is fast growing while it is an old-school PoS provider. 

Also, the short-sellers noted that the company was aggressively manipulating its financials in a bid to boost its performance. They identified areas where the company acquired distributors and manipulated its cash flows.

Further, Blue Orca noted that the CEO had involved in questionable activities meant to boost the share price. For one, as the Shift4 Payments stock price plunged, he said that he was prepared to take the company private because it was very undervalued. In reality, he was actively selling the shares, according to insider data. 

Blue Orca’s short report on Shift4 Payments also saw its Chief Financial Officer depart last year as some Wall Street analysts questioned the company. In terms of weak corporate governance, the report questioned why the company had too much related party transactions, including payments to the CEO’s private jet company.

I believe that Blue Orca’s argument against the company is well-researched and contains many accurate representations. These issues could affect the future performance of the stock as more holders start selling.

It is worth noting that other similar companies have received some short-seller attention recently. In March, Hindenburg Research targeted Block, the parent company of Square, as we wrote here. And this week, another report targeted Nuvei, a Canadian fintech company that provides payment solutions to gambling and crypto companies.

Shift4 Payments stock price forecast

SHIFT chart by TradingView

The daily chart shows that the SHIFT stock price has nosedived in the past few days. In this period, the shares have managed to move below the 25-day and 50-day moving averages. The decline happened as the two lines of the rising wedge pattern were about to reach a confluence level. 

The shares also plunged below the important resistance point at $66.55, the highest point in May this year. Therefore, because of the rising wedge pattern and the short-seller report, there is a likelihood that the stock will continue falling as sellers target the next key support level at $50. A move above the resistance point at $66.50 will invalidate the bearish view.

The post Shift4 Payments (FOUR) stock price pattern points to more pain ahead appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Rep. Jennifer Wexton (D-Va.) announced on Tuesday that she has been diagnosed with Parkinson’s Disease. “If there’s one thing that Democrats and Republicans can...

    Latest News

    After Dianne Feinstein announced she’d contracted the shingles in early March, her staff said she planned to return to the Senate within a matter...


    A U.S. District Court judge has ruled that Elizabeth Holmes, founder and CEO of the disgraced blood-testing company Theranos, cannot remain free on bail...

    Latest News

    SEOUL, South Korea — When a group of American lawmakers arrived in South Korea for meetings with government and military officials, President Yoon Suk-yeol...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.