What to Make of the Tyro Payments Share Price (ASX:TYR)

It has been far from smooth sailing for Tyro Payments Ltd [ASX:TYR], but data from June is beginning to paint a more positive outlook.

The TYR share price is up .3% today, as the ASX threatens to shed more this week.

Unlike the ripper run BNPL companies like Afterpay Ltd [ASX:APT] and Zip Co Ltd [ASX:Z1P] are experiencing, Tyro had a difficult June.

Shares in the payments solution company are down 17.6% this month.

After initially opening lower this morning, TYR’s share price is on the up, gaining up to .89%, to trade at $3.37 per share at time of writing.

Will Victoria stifle TYR’s share price rebound?

The greatest users of Tyro’s payment system are in the hospitality sector.

Thanks to the forced closure of many businesses due to coronavirus-induced lockdowns, TYR’s business suffered.

April and May saw large decreases in transaction volumes from the previous year.

But June data provides a more positive outlook, not just for TYR, but for small businesses in general.

Data released this morning shows transactions made through Tyro have increased by 8% compared to June 2019.

Download now: Three ASX fintech stocks taking on the banks (and winning).

As businesses around the country continue to reopen and state governments begin to relax restrictions, these figures could improve.

With new surges in coronavirus numbers, both in Victoria and overseas, some restrictions may be retightened.

If businesses are forced to close again, or at the very least continue to be restricted, TYR’s path to recovery may be far from over.

Tyro has committed to providing weekly business updates throughout the coronavirus pandemic.

While it is difficult to say what effect this has had on the share price exactly, the ultra-transparent reporting strategy has provided fascinating insight into the impacts of COVID-19.

Though its share price has been depressed throughout June, TYR’s weekly updates are showing that as Australia’s economy slowly reopens, so too have Australian wallets.

Will pessimism return?

Perhaps the most curious trend in the TYR share price is how rapidly it rebounded during April and May (the months which recorded losses).

Compare this to June, where TYR recorded gains.

Why would the share price go up when the company is doing bad and down when the company is doing good?

One possible answer: pessimism.

Like I mentioned earlier, with new increases of COVID-19 springing up around the globe, a fresh wave of pessimism seems to have followed.

Broader markets reflect this.

The ASX 200 began to retreat in June, though only marginally.

The S&P 500 too began to retreat in the second half of the month.

If there is a renewed wave of pessimism, we could see a second round of losses.

That’s why we’ve constructed the ‘The Coronavirus Portfolio’. It’s a two-pronged plan that could help you deal with the financial implications of COVID-19. Download your free report here.

Regards,

Lachlann Tierney,
For Money Morning


Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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