Zacks Investment Research downgraded shares of Global Payments Inc. (NYSE:GPN) from a hold rating to a sell rating in a research report released on Monday morning.
According to Zacks, “Global Payments' shares have outperformed its industry year to date. The company incurred significant debt to fund the Heartland acquisition. This also pushed up interest expenses, which have dented the company’s bottom line. Further, an increase in interest expenses may reduce the company’s operating cash flow and could hinder its ability to fund operations, capital expenditures, acquisitions, share repurchases or dividends. Global Payments derives nearly 30% of its revenues from international operations, so it remains exposed to changes in currency exchange rates. Nevertheless, the company’s investment in future growth, efforts to progress with the Heartland integration and successfully refinancing its credit facilities bode well for the long term.”
Other equities analysts have also recently issued research reports about the company. Royal Bank Of Canada reiterated a buy rating and issued a $90.00 target price on shares of Global Payments in a report on Friday, July 7th. Mizuho started coverage on Global Payments in a report on Tuesday, June 27th. They issued a buy rating and a $105.00 target price for the company. Keefe, Bruyette & Woods reiterated a buy rating and issued a $100.00 target price on shares of Global Payments in a report on Thursday, August 3rd. Stifel Nicolaus reiterated a buy rating and issued a $103.00 target price (up previously from $102.00) on shares of Global Payments in a report on Friday, August 4th. Finally, Robert W. Baird reiterated a buy rating and issued a $106.00 target price on shares of Global Payments in a report on Tuesday, September 5th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and twenty-two have issued a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $101.01.
Shares of Global Payments (NYSE:GPN) opened at 99.06 on Monday. The company has a market cap of $15.11 billion, a P/E ratio of 76.85 and a beta of 1.11. Global Payments has a 12 month low of $64.63 and a 12 month high of $100.34. The firm has a 50-day moving average price of $95.97 and a 200 day moving average price of $90.42.
Global Payments (NYSE:GPN) last announced its earnings results on Thursday, August 3rd. The business services provider reported $0.94 EPS for the quarter, topping the Zacks’ consensus estimate of $0.87 by $0.07. The firm had revenue of $847.90 million during the quarter, compared to analysts’ expectations of $837.76 million. Global Payments had a return on equity of 18.32% and a net margin of 6.65%. The company’s quarterly revenue was up 18.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.76 EPS. Equities analysts predict that Global Payments will post $3.95 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 29th. Shareholders of record on Friday, September 15th were given a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 0.04%. The ex-dividend date of this dividend was Thursday, September 14th. Global Payments’s dividend payout ratio (DPR) is presently 2.45%.
In other Global Payments news, insider David E. Mangum sold 75,794 shares of Global Payments stock in a transaction on Thursday, August 10th. The stock was sold at an average price of $94.51, for a total transaction of $7,163,290.94. Following the completion of the sale, the insider now directly owns 112,930 shares of the company’s stock, valued at approximately $10,673,014.30. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Alan M. Silberstein sold 600 shares of Global Payments stock in a transaction on Tuesday, July 18th. The shares were sold at an average price of $90.94, for a total value of $54,564.00. Following the sale, the director now directly owns 47,893 shares of the company’s stock, valued at $4,355,389.42. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 162,949 shares of company stock valued at $15,584,831. 0.93% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Thompson Davis & CO. Inc. raised its position in Global Payments by 0.8% during the 2nd quarter. Thompson Davis & CO. Inc. now owns 1,197 shares of the business services provider’s stock valued at $108,000 after purchasing an additional 10 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its position in Global Payments by 0.3% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 11,329 shares of the business services provider’s stock valued at $1,023,000 after purchasing an additional 34 shares in the last quarter. Xact Kapitalforvaltning AB raised its position in Global Payments by 0.3% during the 2nd quarter. Xact Kapitalforvaltning AB now owns 11,990 shares of the business services provider’s stock valued at $1,083,000 after purchasing an additional 41 shares in the last quarter. First Personal Financial Services raised its position in Global Payments by 1.7% during the 2nd quarter. First Personal Financial Services now owns 2,875 shares of the business services provider’s stock valued at $260,000 after purchasing an additional 47 shares in the last quarter. Finally, Keybank National Association OH raised its position in Global Payments by 1.5% during the 2nd quarter. Keybank National Association OH now owns 3,792 shares of the business services provider’s stock valued at $342,000 after purchasing an additional 56 shares in the last quarter. 97.84% of the stock is owned by institutional investors and hedge funds.
Global Payments Company Profile
Global Payments Inc is a provider of payment technology services. The Company provides payment and digital commerce solutions. The Company operates through three segments: North America, Europe and Asia-Pacific. The Company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services.
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