JetPay Corporation (NASDAQ:JTPY) has caught the interest of some investors today, with the stock currently at $4.27, which puts it up 61% (+$1.62) from Wednesday’s closing price of $2.65.
This is the highest the stock has been since the start of this year and, even in the last five years, the stock has only managed to reach a high of $3.70 back in March 2013. However, the stock has seen better days, back in 2012 when it lingered within the $6 range. The stock’s lowest point in the last five years was in September 2014, when it declined to $1.53, which looks to be the stock’s all-time low.
What could be causing this jump in stock price, its highest in almost five years? The company, which provides payment services such as debit and credit card processing, has made no announcements as of late (the last official announcement coming on November 21 of this year, announcing that the company had appointed a new member to its Board of Directors), so it doesn’t look like there has been any direct cause for a stock increase. But indirectly, it could be reaping the benefits.
There have been a number of Wall Street stocks on the rise today, such as MagneGas Corporation (NASDAQ:MNGA) – up 12.9% – or Peer to Peer Network (OTC:PTOP) – up 72.4%. Those not on the rise due to something the company is directly doing, like what appears to be going on with JetPay’s stock, may be seeing an increase due to the passing of a major US tax cut bill, which occurred recently.
On Wednesday, the Senate approved the final version of the US’s first tax code overhaul in over 30 years. It is now awaiting the signature of President Donald Trump. Despite 55% of Americans in opposition to the plan, these tax cuts look to be happening, with the President predicting that they will produce numerous jobs in the future and bigger paycheques by February. This tax bill is set to ease the tax burden on businesses, dropping the corporate tax rate to 21% from its current 35%.
The result may already be taking effect on some companies. Companies like JetPay, that don’t look to have any current direct effects influencing their stock may be seeing some temporary benefit from the outside influence of the impending tax cuts for businesses. Only time will tell.
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