Advertisement
Canada markets closed

  • S&P/TSX

    22,244.02
    +20.35 (+0.09%)
     

  • S&P 500

    5,537.02
    +28.01 (+0.51%)
     

  • DOW

    39,308.00
    -23.90 (-0.06%)
     

  • CAD/USD

    0.7346
    -0.0001 (-0.01%)
     

  • CRUDE OIL

    83.98
    +0.10 (+0.12%)
     

  • Bitcoin CAD

    78,929.95
    -3,074.51 (-3.75%)
     

  • CMC Crypto 200

    1,213.16
    -48.03 (-3.81%)
     

  • GOLD FUTURES

    2,369.40
    0.00 (0.00%)
     

  • RUSSELL 2000

    2,036.62
    +2.75 (+0.14%)
     

  • 10-Yr Bond

    4.3550
    0.0000 (0.00%)
     

  • NASDAQ futures

    20,411.50
    0.00 (0.00%)
     

  • VOLATILITY

    12.26
    +0.17 (+1.41%)
     

  • FTSE

    8,241.26
    +70.14 (+0.86%)
     

  • NIKKEI 225

    40,913.65
    +332.89 (+0.82%)
     

  • CAD/EUR

    0.6791
    -0.0001 (-0.01%)
     

Hedge fund that targeted Nuvei twice says it's no longer short the stock

"We'd like to thank Nuvei for the @VancityReynolds promo opportunity to reshort," Spruce Point said

Michelle Zadikian
·Senior Reporter
·2 min read
Contactless payment concept, female customer holding credit card near nfc technology on counter, client make transaction pay bill on terminal rfid cashier machine in restaurant store, close up view
Spruce Point Capital says it's no longer betting against Nuvei, a company it has publicly criticized twice over the past two years. (gahsoon via Getty Images)

A U.S.-based short seller that publicly targeted Canadian payments firm Nuvei (NVEI.TO) (NVEI) twice, says it has exited its short position on the company.

"No longer short $NVEI #Nuvei; it reached our price (target) range," Spruce Point Capital announced on Twitter on Wednesday.

Nuvei's Toronto-listed shares climbed nearly four per cent shortly after the tweet, before paring some of those gains.

The hedge fund's most recent attack on the company was in April, when it questioned Nuvei's Paya Holdings takeover and the extent of its ties to now-bankrupt crypto exchange FTX, among other things.

ADVERTISEMENT

Spruce Point's 84-page short report also came a day after the company announced movie star Ryan Reynolds had invested in the firm.

Nuvei had said it wouldn't further respond to Spruce Point's claims and that it would stay focused on operating its business.

At the time, Spruce Point claimed Nuvei shares could fall between 35 per cent and 50 per cent.

From the date of the hedge fund's report in April to before Wednesday's stock jump, the share price had declined more than 30 per cent.

Previously, Spruce Point targeted Nuvei in December 2021, criticizing numerous issues including its financial disclosures. A number of bullish analysts came to Nuvei's defence, sticking with their ratings and price targets.

Nuvei went public on the Toronto Stock Exchange in September 2020 in what was the largest initial public offering to date that year.

Michelle Zadikian is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @m_zadikian.

Download the Yahoo Finance app, available for Apple and Android.