PAX Should I Buy
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Patria Investments Ltd (PAX) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has potential growth catalysts from its recent acquisition, the weak financial performance in the latest quarter and overbought technical indicators suggest caution. Holding the stock or waiting for a better entry point is recommended.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI at 80.603 shows the stock is overbought, suggesting a potential pullback. The current price is near the resistance level of 12.659, with the next resistance at 13.1 and support at 11.944.
The acquisition of WP Global Partners enhances Patria's scale in the U.S. middle-market, increasing Fee Earning Assets Under Management to $13.6 billion. This positions the company to better address client demand for U.S. market exposure.
The latest financial performance shows significant declines in revenue (-16.39% YoY), net income (-37.56% YoY), EPS (-37.14% YoY), and gross margin (-28.00% YoY). Additionally, the stock is overbought based on RSI, and there is no recent congress trading or strong hedge fund/insider activity.
In Q4 2025, the company reported a revenue drop to $133.2 million (-16.39% YoY), net income drop to $34.5 million (-37.56% YoY), EPS drop to 0.22 (-37.14% YoY), and gross margin drop to 41.74% (-28.00% YoY).
Analysts are mixed. Goldman Sachs has a Buy rating with a price target of $20, while BofA has a Neutral rating with a reduced price target of $17. Recent revisions reflect cautious sentiment post-Q4 reporting.
